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Book Value versus Market Value Filer Manufacturing has 6 million shares of common stock outstanding. The current share price is $78. and the book value
Book Value versus Market Value Filer Manufacturing has 6 million shares of common stock outstanding. The current share price is $78. and the book value per share is $5. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value $65 million, has a coupon of 7 percent, and sells for 98 percent of par. The second issue has a face value of $35 million, has a coupon of 8 percent, and sells for 106 percent of par. The first issue matures in 22 years, the second in 5 years. What are Filer's capital structure weights on a book value basis? (Do not round intermediate calculations and round your final answers to 4 decimal places, (e.g.. 32.1616)) What are Filer's capital structure weights on a market value basis? (Do not round intermediate calculations and round your final answers to 4 decimal places, (e.g.. 32.1616)) Which are more relevant? Market value Book value
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