Question
Filer Manufacturing has 8,388,252 shares of common stock outstanding. The current share price is $30.14, and the book value per share is $8.56. Filer Manufacturing
Filer Manufacturing has 8,388,252 shares of common stock outstanding. The current share price is $30.14, and the book value per share is $8.56. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $50,321,605, has a 0.09 coupon, matures in 9 years and sells for 84 percent of par. The second issue has a face value of $72,686,474, has a 0.05 coupon, matures in 20 years, and sells for 91 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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