A firm's current balance sheet is as follows: Assets 5130 Debe 413 Equicy 5.117 a. What is the firm's weighted-average cost of capital at vanous combination of debt and equity, giver the following intormation? answers to one decimal place. b. Construct a pro forma balance sheet that indicates the firm's optimal capital structure. Choose the best structure from the ogtions analyzed in part:a, Compare this balance shet with the firm's current balance sheet. Round your answers to the nearest doilar. Assets $130 Debt Equity What course of action should the firm take? Round your answer to the nearest whole number. Since the firm is currently using \%ebt financing, it at its optmal capital structure and c. As a fim initially substitutes debt for equity financing. what happens to the cost of capital? The cost of capitai initially d. If a firm uses too much debt financing, why does the cost of capital rise? If a firm uses top much debt financing, the firm becomes financilly leveraged and risikier. This causes the interest rate to and the cost of eculty to - These changes in the cost of debt and equity cause the cost of capital to