Question
Filer Manufacturing has 10.1 million shares of common stock outstanding. The current share price is $53, and the book value per share is $5. Filer
Filer Manufacturing has 10.1 million shares of common stock outstanding. The current share price is $53, 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 $89 million, has a 9 percent coupon, and sells for 91 percent of par. The second issue has a face value of $64.64 million, has a 9 percent coupon, and sells for 94.3 percent of par. The first issue matures in 9 years, the second in 5 years. |
Requirement 1: |
(a) | What is Filer's capital structure weight of equity on a book value basis? (Do not round your intermediate calculations.) |
(Click to select)0.25730.24740.2350.25970.2548 |
(b) | What is Filer's capital structure weight of debt on a book value basis? (Do not round your intermediate calculations.) |
(Click to select)0.78270.77520.75260.79030.715 |
Requirement 2: |
(a) | What is Filer's capital structure weight of equity on a market value basis? (Do not round your intermediate calculations.) |
(Click to select)0.7904.8299.8220.8141.7509 |
(b) | What is Filer's capital structure weight of debt on a market value basis? (Do not round your intermediate calculations.) |
(Click to select)0.19910.22010.20960.2180.2159 |
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