Filer manufacturing has 111 million shares of common stock


Filer Manufacturing has 11.1 million shares of common stock outstanding. The current share price is $55, 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 $97 million, has a 7 percent coupon, and sells for 94 percent of par. The second issue has a face value of $63.27 million, has a 7 percent coupon, and sells for 97.6 percent of par. The first issue matures in 9 years, the second in 5 years.

A. What is Filer's capital structure weight of equity on a book value basis? B. What is Filer's capital structure weight of debt on a book value basis? C. What is Filer's capital structure weight of equity on a market value basis? D. What is Filer's capital structure weight of debt on a market value basis?

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Financial Management: Filer manufacturing has 111 million shares of common stock
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