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Filer Manufacturing has 7 million shares of common stock outstanding. The current share price is $79, and the book value per share is $6. Filer
Filer Manufacturing has 7 million shares of common stock outstanding. The current share price is $79, and the book value per share is $6. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $70 million and a 8 percent coupon and sells for 94 percent of par. The second issue has a face value of $40 million and a 9 percent coupon and sells for 107 percent of par. The first issue matures in 6 years, the second in 23 years. 6.66 points 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.) eBook Print Equity / Value Debt / value References b. What are Filer'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? Market value Book value
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