What is the firms optimal capital structure

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Reference no: EM13924453

A clinic has obtained the following estimates for its costs of debt and equity at various capital structures:

% Debt After-tax Cost of Debt Cost of Equity

0% -- 16%

20 7.0 17

40 8.5 18

60 10.0 20

70 13.0 24

What is the firm’s optimal capital structure?

Calculate its corporate cost of capital at each structure

Reference no: EM13924453

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