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Beta of PC Ltd. is 1.5 when the debt level (wd) is 20% You want to estimate the optimal capital structure of the company and

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Beta of PC Ltd. is 1.5 when the debt level (wd) is 20% You want to estimate the optimal capital structure of the company and the value of the firm The company has growth rate of O The expected Free Cash Flow (FCF) is 40 million Data for other market information is given below Risk-free rate 4% MRP 12% Tax 30% Beta of the firm at 20% debt 1.50 90.00% 20.00% You received the below estimates (from a bank) of cost of debt at different levels of debt in the capital structure weight to debt wd 0.00% 25.00% 50.00% 75.00% cost of debt rd 0.00% 6.00% 8.00% 10.00% Clearly show your calculations and do not copy paste your values a) Find the optimal capital structure b) Find the WACC and Value of operation at optimal capital structure

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