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A firm's market value of equity is $700,000. The firm's capital structure also consists of bonds with a face value of $200,000, an annual coupon

A firm's market value of equity is $700,000. The firm's capital structure also consists of bonds with a face value of $200,000, an annual coupon rate of 3% p.a., a current yield of 4% p.a., and a maturity date in five years.

What is the firm's debt ratio, based on market values?

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