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A firm has 10,000 perpetual bonds outstanding. The bonds have a par value of $1,000 and a coupon rate of 6 percent paid annually. The

A firm has 10,000 perpetual bonds outstanding. The bonds have a par value of $1,000 and a coupon rate of 6 percent paid annually. The nominal interest rate on these bonds is 6.5 percent. The firm also has 1 million shares of stock outstanding with a market price of $24 per share. What is the firm's market value debt-equity ratio?

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