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19. A company's zero coupon bond issue matures in 16 years and has a yield to maturity of 10.60%. Each zero has a face value

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19. A company's zero coupon bond issue matures in 16 years and has a yield to maturity of 10.60%. Each zero has a face value of $1,000 and there are 4,000 of the bonds outstanding. If the market values the equity at $1,800,000, what capital structure weight for debt would you use in calculating the WACC, assuming the firm's only debt consists of the zeros? a. 0.106 b. 0.307 c. 0.690 d. 0.693 e. none of the above

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