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DeVille Industrial Machines issued 144,000 zero coupon bonds five years ago.

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DeVille Industrial Machines issued 144,000 zero coupon bonds five years ago. The bonds originally had 30 years to maturity with a 7.4 percent yield to maturity. Interest rates have recently increased, and the bonds now have an 8.5 percent yield to maturity.;Required;If the company has a $45.9 million market value of equity, what weight should it use for debt when calculating the cost of capital? (Round your answer to 4 decimal places (e.g., 32.1616).)

 

Paper#25094 | Written in 18-Jul-2015

Price : $27
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