Dinklage corp. has 4 million shares of common stock outstanding. the current share price is $70, and the book value per share is $5. the company also has two bond issues outstanding. the first bond issue has a face value of $60 million, a coupon of 5 percent, and sells for 95 percent of par. the second issue has a face value of $40 million, a coupon of 6 percent, and sells for 104 percent of par. the first issue matures in 20 years, the second in 4 years.
a. what are the company's capital structure weights on a book value basis? (do not round intermediate calculations and round your answers to 4 decimal places, e. g., 32.1616.) equity/value debt/value
b. what are the company’s capital structure weights on a market value basis? (do not round intermediate calculations and round your answers to 4 decimal places, e. g., 32.1616.) equity/value debt/value
c. which are more relevant, the book or market value weights? market value book value

You are the manager in charge of global operations at bankglobal – a large commercial bank that operates in a number of countries around the world. you must decide whether or not to launch a new advertising campaign in the u. s. market. your accounting department has provided the accompanying statement, which summarizes the financial impact of the advertising campaign on u. s. operations. in addition, you recently received a call from a colleague in charge of foreign operations, and she indicated that her unit would lose $8 million if the u. s. advertising campaign were launched. your goal is to maximize bankglobal’s value. should you launch the new campaign? explain. pre-advertising campaign post-advertising campaign total revenues $18,610,900 $31,980,200 variable cost tv airtime 5,750,350 8,610,400 ad development labor 1,960,580 3,102,450 total variable costs 7,710,930 11,712,850 direct fixed cost depreciation – computer equipment 1,500,000 1,500,000 total direct fixed cost 1,500,000 1,500,000 indirect fixed cost managerial salaries 8,458,100 8,458,100 office supplies 2,003,500 2,003,500 total indirect fixed cost $10,461,600 $10,461,600

On july 1, oura corp. made a sale of $ 450,000 to stratus, inc. on account. terms of the sale were 2/10, n/30. stratus makes payment on july 9. oura uses the net method when accounting for sales discounts. ignore cost of goods sold and the reduction of inventory. a. prepare all oura's journal entries. b. what net sales does oura report?

What impact might an economic downturn have on a borrower’s fixed-rate mortgage? a. it might cause a borrower’s payments to go up. b. it might cause a borrower’s payments to go down. c. it has no impact because a fixed-rate mortgage cannot change. d. it has no impact because the economy does not affect interest rates.