Filer Manufacturing has 5 million shares of common stock outstanding. The current share price is $71, and the book value per share is $6. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $65 million and a coupon rate of 6 percent and sells for 96 percent of par. The second issue has a face value of $45 million and a coupon rate of 7 percent and sells for 105 percent of par. The first issue matures in 21 years, the second in 5 years.
a. What are the company’s capital structure weights on a book value basis?
Equity/Value
Debt/Value
b. What are the company’s capital structure weights on a market value basis?
Equity/Value
Debt/Value