Manufacturing Inc. has 9 million shares of common stock outstanding. The current share price is $88, and the book value per share is $7. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $80 million and a 5 percent coupon and sells for 98 percent of par. The second issue has a face value of $55 million and a 6 percent coupon and sells for 106 percent of par. The first issue matures in 8 years, the second in 20 years.

a. What are Manufacturing Inc.'s capital structure weights on a book value basis? (Do not round intermediate calculations. Round the final answers to 4 decimal places.)

Equity / Value = Debt / Value =

b. What are Manufacturing Inc.'s capital structure weights on a market value basis? (Do not round intermediate calculations. Round the final answers to 4 decimal places.)

Equity / Value = Debt / Value =

c. Which are more relevant? (Multiple choice) Market value Book value