Question
Binomial Tree Farms financing includes $6.90 million of bank loans and $7.90 million book (face) value of 10-year bonds, which are selling at 80% of
Binomial Tree Farms financing includes $6.90 million of bank loans and $7.90 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 $8.57. It has 690,000 shares of common stock outstanding which trade on the Wichita Stock Exchange at $35 per share. What debt ratio should Binomial use to calculate its WACC?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0256147175, 978-0256147179
