Book value-market value

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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

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