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Binomial Tree Farms financing includes $5 million of bank loans. Its common equity is shown in Binomials Annual Report at $6.67 million. It has 500,000

Binomial Tree Farms financing includes $5 million of bank loans. Its common equity is shown in Binomials Annual Report at $6.67 million. 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 or asset beta? Explain

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