What are capital structure weights on market value basis

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Filer Manufacturing has 5 million shares of common stock outstanding. The current share price is $84, and the book value per share is $7. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value $60 million, has a coupon of 7 percent, and sells for 94 percent of par. The second issue has a face value of $35 million, has a coupon of 8 percent, and sells for 107 percent of par. The first issue matures in 22 years, the second in 4 years.

a. What are Filer's capital structure weights on a book value basis? (Do not round intermediate calculations and round your final answers to 4 decimal places.

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

Reference no: EM13923085

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