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Ace Industrial Machines issued 185,000 zero coupon bonds 8 years ago. The bonds originally had 30 years to maturity with a yield to maturity of

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Ace Industrial Machines issued 185,000 zero coupon bonds 8 years ago. The bonds originally had 30 years to maturity with a yield to maturity of 6.5 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of 5.6 percent. The bonds have a par value of $2,000. If the company has a $87.4 million market value of equity, what weight should it use for debt when calculating the cost of capital? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g.. .1616.) Weight of debt 0.5608

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