market risk premium 5.5% and tax rate 40%

tax 6. You have been asked to estimate the debt ratio for a firm, with the following financing details: The firm has two classes of shares outstanding; 50,000 shares of class A stock, with 2 voting rights shares of class B stock, with 1/2 voting right per per share, trading at $100 per share and 100,000 share, trading at $90 per share. The firm has $5 million in bank debt, and the debt was taken on recently. Estimate the debt ratio. Why does it matter when the bank debt was taken on