DQuestion $2$The Board of Grant Metal Inc has asked you to review its capital structure and determine ways to reduce the weighted average cost of capital. Looking at select data from the most recent financial statements $($shown in Exhibit BJ$,$ your conclusions about the debt equity mix are $[$ Select $|$ Using the data in the Exhibit, the WACC of the company isSelectD$/$E ratio is $0\mathrm{.}613$b$/$t ratio is $0\mathrm{.}1818\%.$ The formula for computing WACC using the company's structure isD$/$E ratio is $0\mathrm{.}121$D$/$E ratio is $1\mathrm{.}3317\mathrm{.}5$ ptsExhibit BCurrent stock price# shares outstandingPaid in surplus $+$ common stockRetained earningsface value of debt outstandingrecently quoted price on debt, as $\%$ of par current yield to maturity on debt risk free rate stock beta market risk premium corporate tax rate$$25\mathrm{.}001\mathrm{.}100\mathrm{.}000$$$11,500,000$$$16,000,000$$$5,000\mathrm{.}00098\mathrm{.}00\%7\mathrm{.}00\%2\mathrm{.}50\%0\mathrm{.}958\mathrm{.}00\%21\mathrm{.}00\%$