47.Elliot Athletics is trying to determine its optimal capitalstructure, which now consists of only debt and common equity. To estimatehow much debt would cost at different debt levels, the company treasury staff has consulted with investment bankers and, on thebasis of those discussions, has created the following table:

Debt/Assets	Equity/Assets	Debt/Equity	Debt	Cost of debt (%)
Ratio (wd)	Ratio (wc)	Ratio (D/E)	Rating
0.25	0.75	0.33	A	7.50%
0.35	0.65	0.5385	BBB	8.40%
0.50	0.50	1.00	BB	9.00%

Elliott uses the CAPM to estimate its cost of common equity, ks. The company estimates that the

risk-free rate is 5 percent, the market risk premium is 6 percent, and its tax rate is 35percent.

Elliott estimates that if it had 10% debt it's beta would be 1.0. What is the companies optimal capital structure? What is the firms cost of capital at this optimal capital structure? (solve in excel)

50. Weighted average cost of capital is 15%, its targeted capital structure is 30% debt and the rest with equity given the debt required a 10% after tax return, most recent dividend paid was $4.00 and its current stock price is $35. Corporate tax is 25%. growth is constant, what is the company growth rate of dividend growth? (show work)