Problem 12-12 Book Value versus Market Value [LO 4] Regions Inc. has 6.9 mi

Problem 12-12 Book Value versus Market Value [LO 4]

Regions Inc. has 6.9 million shares of common stock outstanding. The current share price is $61.90 and the book value per share is $4.9.
Regions also has two bond issues outstanding. The first bond issue has a face value of $70.9 million a 7.4 percent coupon and sells for
93.5 percent of par. The second issue has a face value of $35.9 million a 7.4 percent coupon and sells for 92.5 percent of par. The first
issue matures in 18 years the second in 10 years.

(a)

What are the company%u2019s capital structure weights on a book value basis? (Round your answers to 4
decimal places (e.g. 32.1616).)

(b)

What are the company%u2019s capital structure weights on a market value basis? (Round your answers to 4
decimal places (e.g. 32.1616).)