You have been asked to calculate the debt ratio for a firm that has the following components to its financing mix:

a. the firm has 1 million shares outstanding, trading at $50 per share

b. the firm has $25 million in straight debt, carrying a market interest rate of 8%

c. the firm has 20,000 convertible bonds outstanding, with a face value of $1000, a market value of $1100, and a coupon rate of 5% (10 year semi annual)

Estimate the debt ratio for this firm.