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Cardinal Builders has a balance sheet that shows $300,000 in equity, $500,000 in bonds, and $200,000 in preferred stock. If this represents the firm's target

Cardinal Builders has a balance sheet that shows $300,000 in equity, $500,000 in bonds, and $200,000 in preferred stock. If this represents the firm's target capital structure, what is its desired debt percentage?

a. 80%

b. 20%

c. 30%

d. 70%

e. 50%

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