=) 7. Struss Corporation considers its optimal capital structure to be 40 percent debt and 60 percent common stock. Struss can borrow unlimited amounts at 15 percent. The common stock can be issued with a required return of 20%. Struss has a tax rate of 30 percent Struss is considering four investment proposals: Expected Level of Investment Project Return Risk Required $100,000,000 25% High B 12% Ave $60,000,000 16% Ave $200,000,000 D 8% Low $20,000,000 When Struss evaluates a project, they consider the level of risk. If the risk level is high, Struss adds a premium of four percent to the WACC. If the risk level is low, Struss subtracts two percent. Required: a) Determine Struss' weighted average cost of capital (WACC). b) Determine Struss' optimal capital budget