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5. (1.5 points) Please explain what are point A and point B+ 40% r 35% 30% 25% 20% Equity Cost of Capital 15% WACC with

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5. (1.5 points) Please explain what are point A and point B+ 40% r 35% 30% 25% 20% Equity Cost of Capital 15% WACC with Taxes 10% Debt Cost of Capital (ro 5% Aftor-Tax Dobt Cost of Capital r(1 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Debt-to-Value Ratio DVED 5. (1.5 points) Please explain what are point A and point B+ 40% r 35% 30% 25% 20% Equity Cost of Capital 15% WACC with Taxes 10% Debt Cost of Capital (ro 5% Aftor-Tax Dobt Cost of Capital r(1 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Debt-to-Value Ratio DVED

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