Regions, Inc., has 7.5 million shares of common stock outstanding.
Regions, Inc., has 7.5 million shares of common stock outstanding. The current share price is $62.50, and the book value per share is $5.5. Regions also has two bond issues outstanding. The first bond issue has a face value of $71.5 million, a 7.0 percent coupon, and sells for 90.5 percent of par. The second issue has a face value of $36.5 million, a 8.0 percent coupon, and sells for 89.5 percent of par. The first issue matures in 20 years, the second in 12 years.Required:(a)What are the company’s capital structure weights on a book value basis? (Round your answers to 4 decimal places (e.g., 32.1616).) Book value weight of equity Book value weight of debt (b)What are the company’s capital structure weights on a market value basis? (Round your answers to 4 decimal places (e.g., 32.1616).) Market value weight of equity Market value weight of debt