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: 30,000 shares of class A stock, with 2 voting rights per share, trading at $40 per share, and 10,000 shares of class B stock with 1/2 voting right per share, trading at $20 per share. The firm has $40, 000 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?