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A firms current balance sheet is as follows: Assets $ 130 Debt $ 13 Equity 117 What is the firms weighted-average cost of capital at
A firms current balance sheet is as follows: Assets $ 130 Debt $ 13 Equity 117 What is the firms weighted-average cost of capital at various combinations of debt and equity, given the following information? Round your answers to one decimal place. Debt/Assets After-Tax Cost of Debt Cost of Equity Cost of Capital 0 % 6 % 13 % % 10 6 13 % 20 7 14 % 30 8 15 % 40 9 16 % 50 11 16 % 60 12 17 % Construct a pro forma balance sheet that indicates the firms optimal capital structure. Choose the best structure from the options analyzed in part a. Compare this balance sheet with the firms current balance sheet. Round your answers to the nearest dollar. Assets $ 130 Debt $ Equity $
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