Question
Filer Manufacturing has 6,295,822 shares of common stock outstanding. The current share price is $20.79, and the book value per share is $9.15. Filer Manufacturing
Filer Manufacturing has 6,295,822 shares of common stock outstanding. The current share price is $20.79, and the book value per share is $9.15. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $79,847,565, has a 0.05 coupon, matures in 7 years and sells for 83 percent of par. The second issue has a face value of $56,156,275, has a 0.06 coupon, matures in 13 years, and sells for 85 percent of par. What is Filer's weight of debt on a market value basis? Enter the answer with 4 decimals (e.g. 0.2345)
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