Question: GW Farm is 40% debt financed. The current return on equity is 15%, and the risk-free rate is 4%. You want to create a portfolio,

GW Farm is 40% debt financed. The current return on equity is 15%, 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.)

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