Filer Manufacturing has 8 million shares of common stock outstanding. The current share price is $74, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value $80 million, a coupon of 9 percent, and sells for 95% of par. The second issue has a face value of $60 million, a coupon of 10% and sells for 108 percent of par. The first issue matures in 24 years, the second in 8 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