Question
Filer Manufacturing has 8,153,782 shares of common stock outstanding. The current share price is $21.85, and the book value per share is $8.46. Filer Manufacturing
Filer Manufacturing has 8,153,782 shares of common stock outstanding. The current share price is $21.85, and the book value per share is $8.46. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $41,852,516, has a 0.07 coupon, matures in 29 years and sells for 90 percent of par. The second issue has a face value of $73,131,043, has a 0.08 coupon, matures in 25 years, and sells for 81 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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