21. GW Farm is 40% debt financed. The current return on equity is 20%, and the risk-free rate is 4%. You want to create a portfolio, return of which is the same as the return of the company's stock when the company is 70% debt-financed with risk free debts. How much do you need to borrow at the risk free rate if your original investment fund is $1,000. (The answer should be rounded to the nearest cent.) 1,000 E(rA)=0.60.2+0.40.04=0.136E(rE)=0.136+(0.1360.04)0.30.7=0.360.36=0.20+(1)0.04=2