Problem $13-17$ Capital Structure $($LO$3)$

Binomial Tree Farm's financing includes $$5$ million of bank loans and $$6$ million book $($face$)$ value of $10-$year bonds, which are selling at

$95\%$ of par value. Its common equity is shown in Binomial's Annual Report at $$6\mathrm{.}67.$ It has $500,000$ shares of common stock

outstanding which trade on the Wichita Stock Exchange at $$18$ per share. What debt ratio should Binomial use to calculate its WACC?

Note: Round your answer to $2$ decimal places

Market debt ratio