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Roberts Co.'s zero coupon bonds mature in 22 years and have a yield to maturity of 12%. Each zero has a face value of $1,000
Roberts Co.'s zero coupon bonds mature in 22 years and have a yield to maturity of 12%. Each zero has a face value of $1,000 and there are 2,000 of the bonds outstanding. If the market value of Roberts' equity is $1,000,000, what capital structure weight for debt would you use in calculating the WACC, assuming Roberts' only debt consists of the zeros? .
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