Filer Manufacturing has 8.7 million shares of common stock outstanding. The current share price is $57, and the book value per share is $5. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $70.8 million and a coupon rate of 7.4 percent and sells for 107.9 percent of par. The second issue has a face value of $60.8 million and a coupon rate of 7.9 percent and sells for 109.7 percent of par. The first issue matures in 9 years, the second in 26 years.

The company