Question

Filer Manufacturing has 6,044,800 shares of common stock outstanding. The current share price is $48.08, and...

Filer Manufacturing has 6,044,800 shares of common stock outstanding. The current share price is $48.08, and the book value per share is $6.39. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $47,943,371, has a 0.06 coupon, matures in 5 years and sells for 83 percent of par. The second issue has a face value of $74,392,701, has a 0.07 coupon, matures in 27 years, and sells for 94 percent of par. What is Filer's weight of equity on a market value basis? Enter the answer with 4 decimals (e.g. 0.2345)

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Equity = 6,044,800 * $48.08 = $290,633,984
Debt = ($47,943,371 * 83%) + ($74,392,701 * 94%)
= $39,792,997.9 + $69,929,138.9
= $109,722,137

Equity weight = $290,633,984 / ($290,633,984 + $109,722,137)
= $290,633,984 / $400,356,121
= 0.7259 or 72.59%

weight of equity on a market value basis = 0.7259 or 72.59%

Add a comment
Know the answer?
Add Answer to:
Filer Manufacturing has 6,044,800 shares of common stock outstanding. The current share price is $48.08, and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Filer Manufacturing has 9,242,591 shares of common stock outstanding. The current share price is $29.47, and...

    Filer Manufacturing has 9,242,591 shares of common stock outstanding. The current share price is $29.47, and the book value per share is $4.66. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $47,395,176, has a 0.06 coupon, matures in 6 years and sells for 94 percent of par. The second issue has a face value of $61,863,276, has a 0.05 coupon, matures in 25 years, and sells for 81 percent of par....

  • Filer Manufacturing has 6,786,996 shares of common stock outstanding. The current share price is $48.36, and...

    Filer Manufacturing has 6,786,996 shares of common stock outstanding. The current share price is $48.36, and the book value per share is $6.69. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $63,091,923, has a 0.07 coupon, matures in 9 years and sells for 90 percent of par. The second issue has a face value of $77,151,159, has a 0.07 coupon, matures in 25 years, and sells for 84 percent of par....

  • Filer Manufacturing has 4,372,396 shares of common stock outstanding. The current share price is $63.96, and...

    Filer Manufacturing has 4,372,396 shares of common stock outstanding. The current share price is $63.96, and the book value per share is $3.69. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $55,719,562, has a 0.07 coupon, matures in 7 years and sells for 80 percent of par. The second issue has a face value of $48,080,635, has a 0.07 coupon, matures in 18 years, and sells for 97 percent of par....

  • Filer Manufacturing has 6000000 shares of common stock outstanding. The current share price is $22.98, and...

    Filer Manufacturing has 6000000 shares of common stock outstanding. The current share price is $22.98, and the book value per share is $9.25. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $63000000, has a 0.06 coupon, matures in 9 years and sells for 90 percent of par. The second issue has a face value of $55000000, has a 0.07 coupon, matures in 16 years, and sells for 81 percent of par....

  • Filer Manufacturing has 6,726,499 shares of common stock outstanding. The current share price is $31.1, and...

    Filer Manufacturing has 6,726,499 shares of common stock outstanding. The current share price is $31.1, and the book value per share is $5.8. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $51,715,711, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $64,694,774, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par....

  • Filer Manufacturing has 8,705,850 shares of common stock outstanding. The current share price is $63.04, and...

    Filer Manufacturing has 8,705,850 shares of common stock outstanding. The current share price is $63.04, and the book value per share is $9.36. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $46,417,671, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $52,899,452, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par....

  • Filer Manufacturing has 6,726,499 shares of common stock outstanding. The current share price is $31.1, and...

    Filer Manufacturing has 6,726,499 shares of common stock outstanding. The current share price is $31.1, and the book value per share is $5.8. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $51,715,711, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $64,694,774, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par....

  • Filer Manufacturing has 6,726,499 shares of common stock outstanding. The current share price is $31.1, and...

    Filer Manufacturing has 6,726,499 shares of common stock outstanding. The current share price is $31.1, and the book value per share is $5.8. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $51,715,711, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $64,694,774, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par....

  • Filer Manufacturing has 8,965,201 shares of common stock outstanding. The current share price is $27.09, and...

    Filer Manufacturing has 8,965,201 shares of common stock outstanding. The current share price is $27.09, and the book value per share is $3.78. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $73,031,874, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $77,711,671, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par....

  • Filer Manufacturing has 4,226,345 shares of common stock outstanding. The current share price is $71.75, and...

    Filer Manufacturing has 4,226,345 shares of common stock outstanding. The current share price is $71.75, and the book value per share is $3.07. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $66,196,171, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $76,232,726, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT