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(Solved): The Dandy Doodle Corp. has 10 million shares of common stock outstanding. The current share price is ...



The Dandy Doodle Corp. has 10 million shares of common stock outstanding. The current share price is $82, and the book value per share is $5. In addition, the Dandy Doodle Corp. has two bonds outstanding. The first bond has a face value of $85 million, a coupon of 5 percent, and sells for 97 percent of par. The second bond has a face value of $55 million, a coupon of 6 percent, and sells for 105 percent of par. The first bond matures in 20 years, while the second bond matures in 9 years. What are the company’s capital structure weights on a book value basis?



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