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  3. q3 filer manufacturing has ii million shares of common stock...

Question: q3 filer manufacturing has ii million shares of common stock...

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Q3: Filer Manufacturing has II million shares of common stock outstanding. The current share price is $63 and the book value per share is S6+ Filer Manufacturing also has two bond issues outstanding. The fi rst bond issue has a face value of $70 million, has a 7 percent coupon, and sells for 93 percent of par. The second issue has a face value of $55 million, has an 8 percent coupon, and sells for 104 percent of par. The f rst issue matures in 21 years, the second in 6 years. a. What are Filers capital structure weights on a book value basis? b. What are Filers capital structure weights on a market value basis? c. Which are more relevant, the book or market value weights? Why? 2
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