Filer Manufacturing has 8.6 million shares of common stock outstanding. The curr
ID: 2765843 • Letter: F
Question
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 $71 million, has a 7 percent coupon, and sells for 97 percent of par. The second issue has a face value of $52.46 million, has a 7 percent coupon, and sells for 101 percent of par. The first issue matures in 9 years, the second in 6 years.
What is Filer's capital structure weight of equity on a book value basis? (Do not round your intermediate calculations.)
What is Filer's capital structure weight of debt on a book value basis? (Do not round your intermediate calculations.)
What is Filer's capital structure weight of equity on a market value basis? (Do not round your intermediate calculations.)
What is Filer's capital structure weight of debt on a market value basis? (Do not round your intermediate calculations.)
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 $71 million, has a 7 percent coupon, and sells for 97 percent of par. The second issue has a face value of $52.46 million, has a 7 percent coupon, and sells for 101 percent of par. The first issue matures in 9 years, the second in 6 years.
Explanation / Answer
Filer Manufacturing All Amounts in million $ Capital Structure Weights based on book value Particulars Qty Rate Total % per book Cost value Common Stock 8.6 4 34.4 21.79% Bond 1 71 78.21% Bond 2 52.46 157.86 Capital Structure Weights based on market value Particulars Qty Rate Total % per market Cost value Common Stock 8.6 48 412.8 77.21% Bond 1 68.87 22.79% Bond 2 52.9846 534.6546
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