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Determine the optimal mix of debt and equity

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Reference no: EM133204916

Problem: Capital Structure and the WACC

Percent Debt (%)

After Tax Debt Cost (%)

Cost of equity (%)

0

-----

14

15

5

18

45

9

22

67

12

25

78

16

30

Determine the WACC for each scenario

Determine the optimal mix of debt and equity.

Present your findings in a spreadsheet, and provide the rationale for your answers.

Reference no: EM133204916

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