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4.4. Ichinomiya Company has a total value of $54 million. Its debt is in the form of zero-coupon bonds, which will mature in 4 years.

4.4. Ichinomiya Company has a total value of $54 million. Its debt is in the form of zero-coupon bonds, which will mature in 4 years. The face value of bonds is $15 million. The riskless rate is 3.15% at present. The of Ichinomiya is 0.42. Find the debt/assets ratio of Ichinomiya. Answer: 23.73%. Show solutions.

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