Question
Filer Manufacturing has 9 million shares of common stock outstanding. The current share price is $75, and the book value per share is $6. Filer
Filer Manufacturing has 9 million shares of common stock outstanding. The current share price is $75, and the book value per share is $6. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value $85 million, has a coupon of 10 percent, and sells for 96 percent of par. The second issue has a face value of $65 million, has a coupon of 11 percent, and sells for 109 percent of par. The first issue matures in 25 years, the second in 9 years.
What are Filer's capital structure weights on a book value basis? What are Filer's capital structure weights on a market value basis? |
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