Calculate the optimal Capital Structure for a firm with the following information (note you only have to do WACC and not stock price):

• The firm is currently a firm with $5,000,0000 in all-equity.
• Firm currently has an unlevered beta of 0.90.
• The risk-free rate is 5% and the return on the market is 12%.
• T=26%

Amt Debt Borrowed	Bond Rating	rd
		0
$500,000	AAA	7.50%
$1,000,000	AA	8.00%
$1,500,000	A	8.70%
$2,000,000	BBB	9.70%
$2,500,000	BB	11.40%
$3,000,000	B	14.40%