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Filer Manufacturing has 6 million shares of common stock outstanding. The current share price is $85, and the book value per share is $8. The

Filer Manufacturing has 6 million shares of common stock outstanding. The current share price is $85, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value $65 million, a coupon of8 percent, and sells for 95 percent of par. The second issue has a face value of $40 million, a coupon of9 percent, and sells for 108 percent of par. The first issue matures in 23 years, the second in 5 years.

a.

What are the company's capital structure weights on a book value basis?(Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)

Equity / Value
Debt / Value

b.

What are the company's capital structure weights on a market value basis?(Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)

Equity / Value
Debt / Value

c.

Which are more relevant?

Market value weights

Book value weights

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