Fill in formulas in the yellow cells to find the optimum capital structure. Debt/Value Ratio (w) Equity/Value Debt/Equity A-T Cost of Levered Cost of Ratio (W.) Ratio (w /w) Debt () Beta Equity WACC 0% 1.0 0.00 3.60% 0.80 8.90% 10% 0.9 0.11 3.66% 0.85 9.17% 20% 0.8 0.25 4.20% 0.91 9.50% 30% 0.7 0.43 4.80% 0.98 9.89% 40% 0.6 0.67 6.00% 1.08 10.43% 50% 0.5 1.00 7.50% 1.21 11.18% 60% 0.4 1.50 9.30% 1.40 12.21% 70% 0.3 2.33 10.80% 1.65 13.60% WACC at optimum debt ratio 0.00% 8.46 Optimum debt ratio 30