Filer Manufacturing has 10 million shares of common stock outstanding. The current share price is $82, and the book value per share is $5. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $85 million and a coupon rate of 5 percent and sells for 97 percent of par. The second issue has a face value of $55 million and a coupon rate of 6 percent and sells for 105 percent of par. The first issue matures in 20 years, the second in 9 years.

a.	What are the companys capital structure weights on a book value basis? (Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 32.1616).)

Equity/Value
Debt/Value

b.	What are the companys capital structure weights on a market value basis? (Do not round intermediate calculations. 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