A firm is considering to change its capital structure. Currently there are 2 options: - Option 1: All Equity (No Debt) - Option 2: 80\% Equity and 20\% Debt You (as a finance manager) have been advised that the firm's current Earnings Before Interest and Tax (EBIT) is above the Breakeven EBIT. Your tasks: 1. Advise to shareholders on what option should be taken and why? 2. With regard to Capital Structure, does the increased use of debt ALWAYS lower the Weighted Average Cost of Capit (WACC)? Why