Question: Springfield Industrial Machine issued 90,000 zero coupon bonds four years ago. The bonds originally had 30 years to maturity with an 8.2 percent yield to

Springfield Industrial Machine issued 90,000 zero coupon bonds four years ago. The bonds originally had 30 years to maturity with an 8.2 percent yield to maturity. Interest rates have recently decreased, and the bonds now have a 7.3 percent yield to maturity. If the company has a $40 million market value of equity, what weight should it use for debt when calculating the cost of Capital?

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