A firm is planning to raise funds for Rs.50 million. The firm is exploring the options of Debt-Equity mix given in the table below. The cost of debt is 8% up to a Debt-Equity mix of 50% and increases to 9.5% beyond that limit. The risk free-rate is 6.5%. The return from the market index is 9.5%. The stock beta of the firm is 1.55. The firm's tax rate is 30%. OPTION 1 2 IN 3 4 Required: DEBT 70% 60% 50% 40% EQUITY 30% 40% 50% 60% Determine the Weighted Average Cost of Capital for each of the options and suggest the optimal mix for debt and equity.