Filer manufacturing has 105 million shares of common stock


Filer Manufacturing has 10.5 million shares of common stock outstanding. The current share price is $48, 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 $84 million, has a 6 percent coupon, and sells for 96 percent of par. The second issue has a face value of $60.9 million, has a 5.99 percent coupon, and sells for 100 percent of par. The first issue matures in 9 years, the second in 6 years.

A. What is Filer's capital structure weight of equity on a book value basis? (Round to 4 decimal places)

B. What is Filer's capital structure weight of debt on a book value basis? (Round to 4 decimal places)

C. What is Filer's capital structure weight of equity on a market value basis? (Round to 4 decimal places)

D. What is Filer's capital structure weight of debt on a market value basis? (Round to 4 decimal places)

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Financial Management: Filer manufacturing has 105 million shares of common stock
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