5. a) XYz LTD has estimated the cost of dett and equity bo varous thanoal gearrg tevel as blose Required: Calculate the optimal capital structure. b) Define the followings terms (i) Capial structure (ii) Optional capital structure (iii) Target capital structure c) Why the capital structure of an utility fim is different from that of a retal firm? d) Briefy explain the traditional view that an optional capital structure evist. Hint: Calculate the WACC of each compound and the lowest WACC is the optimat