Finance Capstone

OPTIMAL CAPITAL BUDGET Here are data on the Schwab _ The capital Structure ig debt and Projected retained = $6 million. New bonds Can be to yield 10%. Applicable marginal tax rate = 30% _ Cost O' retained = 155% Cost o' New Stock = 16.5% _ The Following capita preects have been identified. All o' them Of risk, hdependent, Project for MCC cost S2s mill $5 0 mill $2 5 mill $2 5 mill IRR 1400% 13.60% 13.50% 12.40% COMPONENT DEBT EQUITY WEIGHT McCl oto 10 MIL MCC2 over 10 MILL _ the optimal cap i W b Lget COC & IRR capital(S)