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Filer Manufacturing has 9.1 million shares of common stock outstanding. The curr

ID: 2634993 • Letter: F

Question

Filer Manufacturing has 9.1 million shares of common stock outstanding. The current share price is $59, 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 $76 million, has a 7 percent coupon, and sells for 90 percent of par. The second issue has a face value of $60.06 million, has a 7 percent coupon, and sells for 93.5 percent of par. The first issue matures in 9 years, the second in 5 years.

What is Filer's capital structure weight of equity on a book value basis? .2195,.2005,.2174,.21111,.2216

What is Filer's capital structure weight of debt on a book value basis? .8126,.7889,.8284,.8447,.7711

What is Filer's capital structure weight of equity on a market value basis? .8523,.836,.8117,.8447,.7711

What is Filer's capital structure weight of debt on a market value basis? .1883,.194,.1958,.1789,.1977

Please show ALL your work, I need help figuring out the steps

What is Filer's capital structure weight of debt on a book value basis? .8126,.7889,.8284,.8447,.7711

What is Filer's capital structure weight of equity on a market value basis? .8523,.836,.8117,.8447,.7711

What is Filer's capital structure weight of debt on a market value basis? .1883,.194,.1958,.1789,.1977

Please show ALL your work, I need help figuring out the steps

Explanation / Answer

Book value of equity will be calculated as the book value per share times the number of shares.

= 9,100,000 * $4= 36,400,000

Book value of debt will be calculated as the face value of the company

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