Book value-market value

Assignment Help Accounting Basics
Reference no: EM13115527

Filer Manufacturing has 9.5 million shares of common stock outstanding. The current share price is $53 and the book value per share is $5. Filer manufactureing also has tow bond issues outstanding. The first bond issue has a face value of $75 million and has 8 percent coupon and sells for 93 percent of par. The second issue has a face value of $60 million and a 7.5 percent coupon and sells for 96.5 percent of par. The first issue matures in 10 years, the second in 6 years.

a. What are filer's capital structure weights on a book value basis?
b. What are filer's capital structure weights or a market value basis?
c. Which are more relevant the book or market value weights?

Reference no: EM13115527

Questions Cloud

What is the mass in grams of the lead : The water level in a graduated cylinder initially at 210 rises to 277 after a piece of lead is submerged. What is the mass in grams of the lead.
Controlling accounts and subsidiary ledgers : What are controlling accounts and subsidiary ledgers? What is the relationship between them?
Illustrate what is the maximum mass : Illustrate what is the maximum mass, m1, that can be hung from the chords before the 5.0kg mass just begins to move?
How much work did the system do : for a certain change the value of U is -2.37 kJ. During the change, the system absorbs 650 joules. how much work did the system do.
Book value-market value : Filer Manufacturing has 9.5 million shares of common stock outstanding. The current share price is $53 and the book value per share is $5.
Illustrate what must be the coefficient of static friction : If a curve with a radius of 87 is perfectly banked for a car traveling 67 , illustrate what must be the coefficient of static friction for a car not to skid when traveling at 84 ?
Relevant aspects of describing data : Discuss what you consider to be the relevant aspects of describing data. Explain and tell why.
Conclude about the compositions of the two membranes : You determine the transition temperatures for two membranes. The first has a transition temperature of 28°C, the second a transition temperature of 15°C. What can you conclude about the compositions of the two membranes?
Determine whether wall has adequate sliding resistance : Whether the wall has adequate sliding resistance and whether the wall is safe against over-turning

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Financial implications-sarbanes oxley act

Discuss the financial impact of SOX and consider its effect on economic growth and enterprise.

  Write down the journal entry

Write down the journal entry that is needed in order to record the acquisition of the bonds on January 1, 2005. Make sure to use the  NET  method.

  Amounts of components of pension expense

Desiree Griseta Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2004 in which no benefits were paid. Determine the amounts of the components of pension expense t..

  Describe fee-for service and activity based costing

Discus briefly the activity-based costing (ABC) and explain how ABC can differ from traditional costing approaches? Consider a health care organization with which you are familiar with and it uses ABC model.

  Benefits of publicly traded company

Describe the benefits accruing to company that is traded in public securities markets. What are the disadvantages to being public?

  Record allowance for doubtful accounts

The ledger of Elburn Company at the end of the current year shows Accounts Receivable $110,000, Sales $840,000, and Sales Returns and Allowances $28,000.

  Public company accounting oversight board

Evaluate the effectiveness of the PCAOB's oversight related to both corporate management's and a certified public accountant for addressing a material weakness in internal controls

  Valid appropriation

It is illegal for a government to spend money for any purpose unless a valid appropriation for that purpose exists. Does this legal rule assure good financial management for each government? Why or why not?

  What is the accounting equation

What is the Accounting Equation? Does it always have to balance, if so why? Are there exceptions to this general rule? If so, what are they?

  Accounting cycle-sample financial statements

Collect the 4 main financial statements from credible sources (newspaper, peer-reviewed journals, investor relations, web sites or annual reports. Create a flow chart that illustrates the steps in the accounting cycle.

  Report foreign currency on consolidated balance sheet

A Clarke Corporation subsidiary buys marketable equity securities and inventory on April 1, 2009, for 100,000 pesos each. It pays for both items on June 1, 2009

  Prepare journal entries that fortune-time recorded

Listed below are transactions dealing with various stock benefit plans of Fortune-Time Corporation during the period 2009-2011. The market price of the stock is $45 at January 1, 2009. Prepare the Journal entries that Fortune-Time recorded for each..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd