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1 . 4 6 slolve it step by step on paper please Your boss, whose background is in financial plan - ning, is concerned about

1.46 slolve it step by step on paper please
Your boss, whose background is in financial plan-
ning, is concerned about the company's high-
weighted average cost of capital of 21%. He has
asked you to determine what combination of debt-
equity financing would lower the company's
WACC to 13%. If the cost of the company's equity
capital is 6% and the cost of debt financing is 28%,
what debt-equity mix would you recommend?
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