Binomial Tree Farms financing includes $6.00 million of bank loans and $7.00 million book (face) value of 10-year bonds, which are selling at 80% of
Binomial Tree Farms financing includes $6.00 million of bank loans and $7.00 million book (face) value of 10-year bonds, which are selling at 80% of par value. Its common equity is shown in Binomials Annual Report at $7.67. It has 600,000 shares of common stock outstanding which trade on the Wichita Stock Exchange at $24 per share. What debt ratio should Binomial use to calculate its WACC?
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Authors: George H. Pink
6th Edition
1567939651, 978-1567939651
