2. Fill out the table provided below using the formula for the weighted average cost of debt and equity capital for alternative leverage positions.
2. Fill out the table provided below using the formula for the weighted average cost of debt and equity capital for alternative leverage positions. Find the optimal leverage position, i.e., a debt-to-equity ratio that results in the minimum average cost of capital. Debt Capital Equity Capital Weighted Leverage Cost Weight Cost Weight Average (D/E) [id (1-1)] (D/A) (i.) (E/A) (ia) 0.00 0.05 0.08 0.33 0.05 0.08 0.50 0.05 0.08 1.00 0.05 0.08 1.50 0.07 0.09 2.00 0.09 0.12 2.50 0.12 0.14 3.00 0.15 0.18 I
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