Filer manufacturing has 11 million shares of common stock, Ask an Expert

Accounting

Filer Manufacturing has 11 million shares of common stock outstanding. The current share price is $49, and the book value per share is $5. Filer Manufacturing also has two bond issues outstanding. The firstbond issue has a face value of $97 million and an 8 percent coupon and sells for 91 percent of par. The second issue has a face value of $68.2 million and an 7.99 percent coupon and sells for 94.2 percent of par. The first issue matures in 11 years, the second in 5 years.

A)What are Filer's capital structure weights on a book value basis? (Round your answer to 4 decimal places. (e.g., 32.1616))

1)Book value weight of equity
2)Book value weight of debt

B)What are Filer's capital structure weights on a market value basis? (Round your answer to 4 decimal places. (e.g., 32.1616))
1)Market value weight of equity
2)Market value weight of debt

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9975336

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - on february 20 2017 coronado inc purchased a

Question - On February 20, 2017, Coronado Inc. purchased a machine for $1,440,000 for the purpose of leasing it. The machine is expected to have a 10-year life, no residual value, and will be depreciated on the straight- ...

Question in this case you have been provided financial

Question: In this case, you have been provided financial information about the company in order to create a cash budget. Management is seeking advice or clarification on three main assumptions the company has been operat ...

Question - on december 31 2012 grant williams enterprises

Question - On December 31, 2012, Grant Williams Enterprises, Inc. (GWE) had income from continuing operations before taxes of $1,800,000. Additionally the following items occurred during 2012 which are not included in th ...

Question - examine and discuss how to use the balance

Question - Examine and discuss how to use the balance scorecard to improve financial performance of an organization. • What is the balance scorecard and how does it impact the strategic plan? • Discuss and describe the d ...

Question - garfield gunman purchased as a held-to-maturity

Question - Garfield Gunman; purchased, as a held-to-maturity investment, $80,000 of the 9%, 5-year bond on Chester Corporation for $70,086, which provides an 11% return. Prepare Garfield's journal entries for (a) the pur ...

Question - adams jackson invests 53400 at 8 annual interest

Question - Adams Jackson invests $53,400 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Adams withdraws the accumulated amount of money. ...

Question - in 2018 x company expects to produce and sell

Question - In 2018, X Company expects to produce and sell 60,000 units of its only product for $33.98. The following are budgeted variable costs per unit: Direct materials - $4.12 Direct labor - 5.57 Variable overhead - ...

Question - the following information relates to rem corps

Question - The following information relates to Rem Corp's accounts receivable for 2015: Accounts receivable, 1/1/15 $ 500,000 Credit sales for 2015 2,000,000 Sales returns for 2015 60,000 Accounts written off during 201 ...

Question - douglas bonds mature in 10 years and have an

Question - Douglas bonds mature in 10 years and have an annual coupon rate of 10.5 percent with semiannual payments. The $1,000 par value bond currently trades at $1,105 in the market. Compute the annual yield to maturit ...

Question - little known tax ltd prepares tax returns for

Question - Little Known Tax, Ltd prepares tax returns for clients. The firm employs six bookkeepers who cost the firm £10,000 in total each week. Each bookkeeper is expected to charge 30 hours per week to client jobs. At ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert