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Filer Manufacturing has 10.1 million shares of common stock outstanding. The current share price is $53, and the book value per share is $3. 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 $3. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $85 million, has a 7 percent coupon, and sells for 94 percent of par. The second issue has a face value of $61.61 million, has a 7 percent coupon, and sells for 98.4 percent of par. The first issue matures in 10 years, the second in 6 years.

Requirement 1:

(a)

What is Filer's capital structure weight of equity on a book value basis? (Do not round your intermediate calculations.)

(b)

What is Filer's capital structure weight of debt on a book value basis? (Do not round your intermediate calculations.)

Requirement 2:
(a)

What is Filer's capital structure weight of equity on a market value basis? (Do not round your intermediate calculations.)

(b)

What is Filer's capital structure weight of debt on a market value basis? (Do not round your intermediate calculations.)

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