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Filer Manufacturing has 8 million shares of common stock outstanding. The current share price is $87, and the book value per share is $6. Filer

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Filer Manufacturing has 8 million shares of common stock outstanding. The current share price is $87, 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 $75 million and a 10 percent coupon and sells for 97 percent of par. The second issue has a face value of $50 million and a 11 percent coupon and sells for 105 percent of par. The first issue matures in 7 years, the second in 25 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 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? O Market value O Book value

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