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ompany X has 2 million shares of common stock outstanding with a book value of $2 per share. The stock trades for $3 per share.

ompany X has 2 million shares of common stock outstanding with a book value of $2 per share. The stock trades for $3 per share. It also has $2 million in face value of debt that trades at 90% of face value. What is the debt ratio that should be used to calculate WACC?

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