Question: Binomial Tree Farm s financing includes $ 6 . 6 million of bank loans. Its common equity is shown in Binomial s Annual Report at

Binomial Tree Farms financing includes $6.6 million of bank loans. Its common equity is shown in Binomials Annual Report at $6.83 million. It has 520,000 shares of common stock outstanding, which trade on the Wichita Stock Exchange at $16.40 per share. What debt ratio should Binomial use to calculate its company cost of capital or asset beta? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

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