Falco Inc. is considering a debt issue and is trying to determine the appropriate amount to issue. Considering the information in the table below, indicate which amount borrowed you believe to be the optimal level of debt and explain completely why.

Amount Borrowed	Value of Equity	Value of the Firm	Stock Price	WACC	EPS
0	18,460	18,460	18.46	13.0%	2.40
$ 2 Million	17,320	19,320	19.32	12.42	2.55
$ 4 Million	15,830	19,830	19.83	12.10	2.70
$ 6 Million	14,020	20,020	20.03	11.99	2.54
$ 8 Million	16,570	24,570	24.57	11.50	3.04
$10 Million	12,000	22,000	22.00	12.00	3.20

NOTE: Value of the Firm is equal to the Amount Borrowed plus the Value of Equity