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Filer Manufacturing has 8.3M shares of common stock outstanding. The current price is $53, and the book value per share is $4. Filer Manufacturing also
Filer Manufacturing has 8.3M shares of common stock outstanding. The current price is $53, and the book value per share is $4. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face/par value of $70M, a coupon rate of 7 percent and sells for 108.3 percent of par. The second issue has a face value of $60M and a coupon rate of 7.5 percent and sells for 108.9. The first issue matures in 8 years, the second in 27 years. a) What are Filers capital structure weights on a book value basis? b) What are Filers capital structure weights on a market value basis
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