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Problem 12-19 Calculating Capital Structure Weights [LO 3] maturity with a yield to maturity of 7 Liu Industrial Machines issued 153,000 zero coupon bonds six
Problem 12-19 Calculating Capital Structure Weights [LO 3] maturity with a yield to maturity of 7 Liu Industrial Machines issued 153,000 zero coupon bonds six years ago. The bonds originally had 30 years now have a yield to maturity of 8.4 percent. percent. Interest rates have recently increased, and the bonds If the company has a $46.8 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, 32.1616.)
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