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 $85 million, has a coupon of 5 percent, and sells for 97 percent of par. The second issue has a face value of $55 million, has a coupon 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 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))

Equity / Value
Debt / Value

b.	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))

Equity / Value
Debt / Value

c.

Which are more relevant?

	Market value
	Book value