Which capital structure recommend giving finance manager

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Giving the following 2 capital structures available to fund a project:

Capital Structure A                                  Capital Structure B

Common shares 25%                          Preferred shares 25%

Bonds 20%                                           Loan 35%

Retained earnings 45%                             Bonds 35%

Loan 10%                                          Common shares 5%

Question 1: If both capital structures have WACC 12,5%, which capital structure you recommend giving that the finance manager is risk seeker (taker)? why?

Reference no: EM132498069

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