Filer Manufacturing has 10.1 million shares of common stock outstanding. The current share price is $47, 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 $89 million, has a 8 percent coupon, and sells for 97 percent of par. The second issue has a face value of $62.62 million, has a 8 percent coupon, and sells for 100.6 percent of par. The first issue matures in 11 years, the second in 6 years.
1. What is Filer's capital structure weight of equity on a book value basis? (Do not round your intermediate calculations.)
a. 0.2508 b. 0.2499 c. 0.2573 d. 0.2623 e. 0.2374
2. What is Filer's capital structure weight of debt on a book value basis? (Do not round your intermediate calculations.)
a. 0.7877 b. 0.7802 c. 0.7501 d. 0.7126 e. 0.7727
3. What is Filer's capital structure weight of equity on a market value basis? (Do not round your intermediate calculations.)
a. 0.7911 b. 0.7987 c. 0.7835 d. 0.7227 e. 0.7607
4. What is Filer's capital structure weight of debt on a market value basis? (Do not round your intermediate calculations.)
a. 0.2465 b. 0.2393 c. 0.2513 d. 0.2489 e. 0.2273