Filer Manufacturing has 4,766,598 shares of common stock outstanding. The current share price is $48.72, and the book value per share is $3.5. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $67,516,398, has a 0.06 coupon, matures in 10 years and sells for 98 percent of par. The second issue has a face value of $66,573,884, has a 0.05 coupon, matures in 8 years, and sells for 95 percent of par. What is Filer's weight of debt on a market value basis? Enter the answer with 4 decimals (e.g. 0.2345)
Filer Manufacturing has 4,766,598 shares of common stock outstanding. The current share price is $48.72, and the book value per share is $3.5. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $67,516,398, has a 0.06 coupon, matures in 10 years and sells for 98 percent of par. The second issue has a face value of $66,573,884, has a 0.05 coupon, matures in 8 years, and sells for 95 percent of par. What is Filer's weight of debt on a market value basis? Enter the answer with 4 decimals (e.g. 0.2345)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Filer Manufacturing has 4,766,598 shares of common stock outstanding. The current share price is $48.72, and the book value per share is $3.5. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $67,516,398, has a 0.06 coupon, matures in 10 years and sells for 98 percent of par. The second issue has a face value of $66,573,884, has a 0.05 coupon, matures in 8 years, and sells for 95 percent of par. What is Filer's weight of debt on a market value basis? Enter the answer with 4 decimals (e.g. 0.2345)
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