Filer Manufacturing has 7 million shares of common stock outstanding. The current share price is $86, and the book value per share is $5. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $70 million and a coupon rate of 9 percent and sells for 96 percent of par. The second issue has a face value of $45 million and a coupon rate of 10 percent and sells for 104 percent of par. The first issue matures in 24 years, the second in 6 years. 
a. 
What are the company’s capital structure weights on a book value basis? (Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 32.1616).) 
Equity/Value  
Debt/Value 
b. 
What are the company’s capital structure weights on a market value basis? (Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 32.1616).) 
Equity/Value  
Debt/Value 
c. 
Which are more relevant, the book or market value weights? 


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