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24. Filer Manufacturing has 8.2 million shares of common stock outstanding. The current share price is $52, and the book value per share is $5.

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24. Filer Manufacturing has 8.2 million shares of common stock outstanding. The current share price is $52, and the book value per share is $5. Filer Manufacturing also has two bond issues outstanding. The rst bond issue has a face value of $70 million, an 8 percent coupon, and sells for 104 percent of par. The second issue has a face value $50 million, a 7'5 percent coupon, and sells for 9? percent of par. The first issue matures in 10 years, the second in 5 years.(assume each unit of bond has a face value of $1,000) a. What are Filer's capital structure weights on book value basis? b. What are Filer's capital structure weights on a market value basis? c. Which are more relevant, the book or market value weights? 'Why? 25. In the previous problem, suppose the most recent dividend was $4 and the dividend growth rate is 6 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 35 percent. "What is the company's WAGE

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