Amount Borrowed	Value of Equity	Value of the Firm	Stock Price	WACC	EPS
0	18,460	18,460	18.46	13.0%	2.40
$ 2 Million	17,320	19,320	19.32	12.42	2.55
$ 4 Million	15,830	19,830	19.83	12.10	2.70
$ 6 Million	14,020	20,020	20.03	11.99	2.54
$ 8 Million	16,570	24,570	24.57	11.50	3.04
$10 Million	12,000	22,000	22.00	12.00	3.20

NOTE: Value of the Firm is equal to the Amount Borrowed plus the Value of Equity

The amount of $8 million should be borrowed as this is the point at which the share price is maximum at $24.57.

Graphically demonstrate the optimal level of debt using the information from the table above.