Consider the following data towards a firm's potential leverage. Assume that the firm can lever up in increments of 10% of firm value upto 60% debt in the capital mix. Further assume that the CAPM holds. How much debt should the firm use to minimize its financing cost?

20%

30%

40%

10%

50%

>60%

0%

60% Consider the data in this section (Section Leverage). What is the firm's cost of financing at the optimal leverage level? (select the option closest to the answer)

12.00%

10.16%

11.05%

9.21%

10.49%

10.8%