1414 WACCaNial smature, WAiL TOUCTURE Eliott Athletics is trying to determine its optimal capital structure, which now consists of only debt and common equity. The firm does not currently use preferred stock in its capital structure, and it does not plan to do so in the future. Its treasury staff has consulted with investment bankers. On the basis of ose discussions, the staff has created the following table showing the firm's debt cost at different debt levels: Debt-to-Capital Equity-to-Capital Ratio