What are filers capital structure weights on market value

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Miiler Manufacturing has 4 million shares of commonstock outstanding. The currentshare price is $76, and the book value per share is $5. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value $90 million, has a coupon of 5 percent, and sells for 94 percentof par. The second issue has aface value of $70 million, has a coupon of 6 percent, and sells for 104 percentof par. The first issue matures in 20 years, the second in 3 years.

a. What are Filer'scapital structure weights on a book value basis?

b. What are Filer's capital structure weights on a market value basis?

c. Which are more relevant?

Reference no: EM13329299

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