Question
DeVille Industrial Machines issued 135,000 zero coupon bonds four years ago. The bonds originally had 30 years to maturity with a 6.5 percent yield to
DeVille Industrial Machines issued 135,000 zero coupon bonds four years ago. The bonds originally had 30 years to maturity with a 6.5 percent yield to maturity. Interest rates have recently increased, and the bonds now have an 8.1 percent yield to maturity.If the company has a $45 million market value of equity, what weight should it use for debt when calculating the cost of capital?
Find the Weight of debt:
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QlikView For Finance
Authors: B. Diane Blackwood
1st Edition
1784395749, 978-1784395742
