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Capital structure weight of equity on market value basis

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Filer Manufacturing has 8.6 million shares of common stock outstanding. The current share price is $48, and the book value per share is $4. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $68 million, has a 8 percent coupon, and sells for 93 percent of par. The second issue has a face value of $49.02 million, has a 8 percent coupon, and sells for 96.3 percent of par. The first issue matures in 11 years, the second in 5 years.

Requirement 1: (a) What is Filer's capital structure weight of equity on a book value basis? (Do not round your intermediate calculations.) (b) What is Filer's capital structure weight of debt on a book value basis? (Do not round your intermediate calculations.)

Requirement 2: (a) What is Filer's capital structure weight of equity on a market value basis? (Do not round your intermediate calculations.) (b) What is Filer's capital structure weight of debt on a market value basis? (Do not round your intermediate calculations.)

Reference no: EM131354507

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