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Filer Manufacturing has 5 million shares of common stock outstanding. The current share price is $77, and the book value per share is $8. Filer

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Filer Manufacturing has 5 million shares of common stock outstanding. The current share price is $77, and the book value per share is $8. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value $60 million, has a coupon of 6 percent, and sells for 97 percent of par. The second issue has a face value of $30 million, has a coupon of 7 percent, and sells for 105 percent of par. The first issue matures in 21 years, the second in 4 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

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