Business, 02.04.2020 02:10 superstarsara5ouh83x

Filer Manufacturing has 8.2 million shares of common stock outstanding. The current share price is $52, 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, an 8 percent coupon, and sells for 104 percent of par. The second issue has a face value $50 million, a 7.5 percent coupon, and sells for 97 percent of par. The first issue matures in 10 years, the second in 6 years.(assume each unit of bond has a face value of $1,000)

a. What are Filer's capital structure weights on book value basis?

b. What are Filer's capital structure weights on a market value basis?

c. Which are more relevant, the book or market value weights? Why?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 21:30, ally6977

What is the eventual effect on real gdp if the government increases its purchases of goods and services by $80,000? assume the marginal propensity to consume (mpc) is 0.75. $ what is the eventual effect on real gdp if the government, instead of changing its spending, increases transfers by $80,000? assume the mpc has not changed. $ an increase in government transfers or taxes, as opposed to an increase in government purchases of goods and services, will result in an identical eventual effect on real gdp. a smaller eventual effect on real gdp. a larger eventual effect on real gdp. no change to real gdp.

Answers: 3

continue

Business, 22.06.2019 19:10, jaylene125

Robin hood has hired you as his new strategic consultant to him successfully transform his social change enterprise. robin has told you that he counting on your strategic management knowledge to him and his merrymen achieve their goals. discuss in detail what you think should be robin’s two primary strategic goals and continue by also explaining your analytical reasons that support your recommendations.

Answers: 3

continue

Business, 22.06.2019 22:00, Kira4585

Retail industry fundamentals credential exam, part 1 all answers

Answers: 3

continue

Business, 22.06.2019 23:00, brok3morgan

The quinoa seed is in high demand in wealthier countries such as the u. s. and japan. approximately 97% of all quinoa production comes from small farmers in bolivia and peru who farm at high elevations—8,000 feet or higher. the seed is considered highly nutritious. mostly grown and harvested in bolivia and peru, and sold to markets in other countries, the seed is now considered an important for these nations. the governments of bolivia and peru are hopeful that this product will increase the quality of life of their farmers.

Answers: 3

continue

You know the right answer?

Filer Manufacturing has 8.2 million shares of common stock outstanding. The current share price is $...