Problem $9-8$ Company cost of capital

Binomial Tree Farm's financing includes $$6\mathrm{.}7$ million of bank loans. Its common equity is shown in Binomial's Annual Report at $$6\mathrm{.}84$

million. It has $495,000$ shares of common stock outstanding, which trade on the Wichita Stock Exchange at $$16\mathrm{.}30$ per share. What

debt ratio should Binomial use to calculate its company cost of capital or asset beta?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.