Question
Filer Manufacturing has 10.1 million shares of common stock outstanding. The current share price is $60, and the book value per share is $4. Filer
Filer Manufacturing has 10.1 million shares of common stock outstanding. The current share price is $60, and the book value per share is $4. 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 96 percent of par. The second issue has a face value of $58.58 million, has a 9 percent coupon, and sells for 98.9 percent of par. The first issue matures in 11 years, the second in 6 years. (a) What is Filer's capital structure weight of equity on a book value basis? (b) What is Filer's capital structure weight of debt on a book value basis? (c) What is Filer's capital structure weight of equity on a market value basis? (d) What is Filer's capital structure weight of debt on a market value basis?
(a) What is Filer's capital structure weight of equity on a book value basis?
(b) What is Filer's capital structure weight of debt on a book value basis?
(c) What is Filer's capital structure weight of equity on a market value basis?
(d) What is Filer's capital structure weight of debt on a market value basis?
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