19. GIVEN THE FOLLOWING INFO, FIND THE OPTIMAL CAPITAL BUDGET. a) The optimal capital structure is debt 30%, Preferred stock 20%, and common equity lis 50%. b) d) e) f) A maximum of $15 million of debt can be issued at an after-tax cost of 6%. The firm's C) debt cost goes up to 8% If it wants to raise more than $15 million in debt. The cost of Pref Stock is 12%. The cost of retained earnings is 18%, and the cost of new common stock is 20% The amount available in retained earnings is $15 million. The firm has the following investment opportunities this year: Investment A (S Million) IRR 10 B (%) 10 16 C 15 18 D 15 14 E 20 14.5 15 Part 1. Compute MCC COMPONENT WEIGHT MCC1 $0 TO $ MILL DEBT MCC2 FR$ MILL to MCC3 OVER $ PS CS MILL MCC Part 2. Complete the diagram (make sure to label) Part 3. The optimal capital budget is