the tax rate is 35 percent. What is Fama's debt equity and cost of det & Book Value vers Market Value Filer Manufacturing has 83 million share common stock outstanding. The current share price is $53, and the book ale per share is 54. Filer Manufacturing also has two bond issues outstanding. The fine bond issue has a face value of $70 million and a coupon rate of 7 percent and for 108 3 percent of par. The second issue has a face value of $60 million and coupon rate of 7.5 percent and sells for 108.9 percent of par. The first is maar in 8 years, the second in 27 years a. What are Filer's capital structure weights on a book value hases? b. What are Filer's capital structure weights on a market value basis e. Which are more relevant, the book or market value weights? Why? Calculating the WACC In the previous problem. suppose the company's mod has a beta of 1.2. The risk-free rate is 3.1 percent, and the market rak pem 7 percent. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semiannual payments Theater 35 percent. What is the company WACC)