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(Solved): 19. Capital Structure Weights: Supposed that - DeVille Co, issued 135,000 zero coupon bonds ...



19. Capital Structure Weights: Supposed that - DeVille Co, issued 135,000 zero coupon bonds (Face value = $1,000) four years ago. - The bonds originally had 30 years to maturity with a 6.5% yield to maturity. - Interest rate have recently increased, and the bonds now have an 8.1% yield to maturity If the company as a $45 million market value of equity, what weight should it use for debt when calculating the cost of capital? Answer:



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