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Debt Capital Equity Capital Plan Percentage Rate,% Percentage Rate,% 1 100 16.6 - - 2 70 13.1 30 7.8 3 65 10.8 35 7.8 4

Debt Capital Equity Capital
Plan Percentage Rate,% Percentage Rate,%
1 100 16.6 - -
2 70 13.1 30 7.8
3 65 10.8 35 7.8
4 50 10.8 5 7.9
5 35 9.7 65 9.8
6 20 7.6 80 12.5
7 - - 100 12.5

Seven different financing plans with their D-E mixes and costs of debt and equity capital for a new innovations project are summarized below. Use the data to determine what mix of debt and equity capital will result in the lowest WACC.

D-E mix of_____ %_____ % has the lowest WACC value.

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