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Ace Industrial Machines Issued 100,000 zero coupon bonds 4 years ago. The bonds originally had 30 years to maturity with a yleld to maturity of
Ace Industrial Machines Issued 100,000 zero coupon bonds 4 years ago. The bonds originally had 30 years to maturity with a yleld to maturity of 5.8 percent. Interest rates have recently decreased, and the bonds now have a yleld to maturity of 4.9 percent. The bonds have a par value of $2,000. If the company has a $73.8 million market value of equity, what welght should It use for debt when calculating the cost of capital? (Do not round Intermedlate calculatlons and round your answer to 4 decimal places, e.g., 1616.) Weight of debt
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