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The only bond issue that Roberts Co. has outstanding are zero coupon bonds maturing in 20 years. The yield to maturity of these bonds is
The only bond issue that Roberts Co. has outstanding are zero coupon bonds maturing in 20 years. The yield to maturity of these bonds is 9.75%. 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 $1,200,000, what capital structure weight for debt would you use in calculating the WACC for Roberts Co
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