1. Amante Company is in the process of setting its target capital structure. The CFO believes that the optimal debt-to-capital ratio is somewhere between 30% and 60%, and her staff has compiled the following projections for WACC at various debt levels.

   Debt/Capital Ratio	WACC
   30%	13%
   40%	10%
   50%	12%
   60%	15%

   Assuming that the firm uses only debt and common equity, what percentage of common equity should it have in its optimal capital structure?

   		60%
   		30%
   		70%
   		40%