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Filer Manufacturing has 6 million shares of common stock outstanding. The current share price is $78, and the book value per share is $5. Filer

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Filer Manufacturing has 6 million shares of common stock outstanding. The current share price is $78, 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 $65 million and a 7 percent coupon and sells for 98 percent of par. The second issue has a face value of $35 million and a 8 percent coupon and sells for 106 percent of par. The first issue matures in 5 years, the second in 22 years. a. What are Filer's capital structure weights on a book value basis? (Do not round intermediate calculations. Round the final answers to 4 decimal places.) Equity / Value Debt / Value b. What are Fller's capital structure weights on a market value basis? (Do not round intermediate calculations. Round the final answers to 4 decimal places.) Equity / Value Debt / Value c. Which are more relevant? O Market value O Book value

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