A company is considering optimizing its capital structure. Currently, the company has $2,000,000 in total assets, financed by $1,000,000 in debt and $1,000,000 in equity. The interest rate on the debt is 6%, and the company's tax rate is 30%. Calculate the current weighted average cost of capital (WACC). Discuss the potential impact of changing the capital structure to 60% debt and 40% equity. Calculate the new WACC if the cost of equity remains at 12%. Analyze the trade-offs between using more debt versus equity in the capital structure, including the benefits of tax shields from debt and the risks of increased financial leverage. Discuss the strategic implications for the company's financial stability and growth potential.