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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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