The face value of the bonds is 20 million the riskless rate


Dartmouth Company has a total value of $55 million. Its debt is in the form of zero-coupon bonds, which will mature in 6 years. The face value of the bonds is $20 million. The riskless rate is 3.41% at present. The sigma of Dartmouth is 0.36. Find the debt/assets ratio of Dartmouth.

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Finance Basics: The face value of the bonds is 20 million the riskless rate
Reference No:- TGS0601392

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