Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. binomial tree farm's financing includes $6.4 milli

Binomial Tree Farm's financing includes $6.4 million of bank loans. Its common equity is shown...

90.2K

Verified Solution

Question

Finance

image

Binomial Tree Farm's financing includes $6.4 million of bank loans. Its common equity is shown in Binomial's Annual Report at $6.81 million. It has 570,000 shares of common stock outstanding, which trade on the Wichita Stock Exchange at $16.60 per share. What debt ratio should Binomial use to calculate its WACC or asset beta? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Debt ratio %

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students