Question: Return to question 6 Binomial Tree Farm's financing includes $5.40 million of bank loans and $6.40 million book (face) value of 10-year bonds, which are

Return to question 6 Binomial Tree Farm's financing includes $5.40 million

Return to question 6 Binomial Tree Farm's financing includes $5.40 million of bank loans and $6.40 million book (face) value of 10-year bonds, which are selling at 80% of par value. Its common equity is shown in Binomial's Annual Report at $7.07. It has 540,000 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? (Round your answer to 2 decimal places.) 10 points Answer is complete but not entirely correct. Market debt ratio 51.98

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