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  3. binomial tree farm's financing includes $5.20 mill

Binomial Tree Farm's financing includes $5.20 million of bank loans and $6.20 million book (face)...

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Binomial Tree Farm's financing includes $5.20 million of bank loans and $6.20 million book (face) value of 10-year bonds, which are selling at 90% of par value. Its common equity is shown in Binomial's Annual Report at $6.87. It has 520,000 shares of common stock outstanding which trade on the Wichita Stock Exchange at $16 per share. What debt ratio should Binomial use to calculate its WACC? (Round your answer to 2 decimal places.) Market debt ratio

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