DeVille Industrial Machines issued 143,000 zero coupon bonds four years ago. The bonds originally had 30 years to maturity with a 7.3 percent yield to maturity. Interest rates have recently increased, and the bonds now have an 8.4 percent yield to maturity.

If the company has a $45.8 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).)

Weight of debt?_____________

The current spot rate between euros and dollars : The current spot rate between Euros and dollars is €1.25/$. You believe that the euro will depreciate relative to the dollar over the next six months and you'd like to use the forward market to trade based on your belief. Find your profit/loss on you.. |

Discussion regarding the resource management : While working as a machinist at the Midvale Steel Company in the 1880s, Frederick Winslow Taylor observed the operation and began thinking about how to organize it for better efficiency. |

Find the traders profit and loss : Consider a trader who takes a long position in a six-month forward contract on the euro. The forward rate is $1.75 = €1.00; the contract size is €62,500. At the maturity of the contract the spot exchange rate is $1.65 = €1.00. Find the trader's profi.. |

Which of the plans has the lowest average cost of capital : Sauer Milk Company is trying to determine its optimal capital structure. Which of the plans has the lowest average cost of capital? |

What weight should use for debt-calculating cost of capital : DeVille Industrial Machines issued 143,000 zero coupon bonds four years ago. The bonds originally had 30 years to maturity with a 7.3 percent yield to maturity. Interest rates have recently increased, and the bonds now have an 8.4 percent yield to ma.. |

An asset has had arithmetic return-geometric return : An asset has had an arithmetic return of 10.3 percent and a geometric return of 8.3 percent over the last 90 years. What return would you estimate for this asset over the next 10 years? 25 years? 30 years? |

Calculate the arithmetic average returns-variances : Returns Year X Y 1 11 % 18 % 2 25 26 3 11 10 4 – 18 – 23 5 10 17 Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. |

Discuss the potential effects each type could have on family : Dual-career marriages can take different forms depending on the focus of the couple. Identify and discuss the differences among these types of marriages. Discuss the potential effects each type could have on the family |

Calculate arithmetic average returns for large-company stock : Suppose we have the following returns for large-company stocks and Treasury bills over a six year period: Year Large Company US Treasury Bill 1 4.00 4.62 2 14.49 4.96 3 19.33 3.88 4 –14.35 7.00 5 –31.84 5.38 6 37.04 6.43 a. Calculate the arithmetic a.. |

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