FINANCIAL MANAGEMENT.

Please I will appreciate if you could help me solve this problem in Financial Management. I am beginner in this course and really need help. Thank you for your help.

Q1. Explain the OCS calculation.

Q2. Use Hamadas equation to determine the optimum.

Q3. Look at the existing capital structure of L3 Harris Technologies below. Do you believe it was optimum?

Capital Structure

Percent of Firm Financed with Debt (Wd)
	10%	15%	20%	25%	30%	35%	40%
ws	90.00%	85.00%	80.00%	75.00%	70.00%	65.00%	60.00%
rd	2.8%	3.0%	3.3%	3.5%	4.0%	5.0%	5.8%
b	1.07	1.11	1.15	1.20	1.26	1.33	1.41
rs	9.9%	10.1%	10.4%	10.7%	11.1%	11.6%	12.1%
rd (1T)	1.7%	1.8%	2.0%	2.14%	2.44%	3.05%	3.51%
WACC	9.04%	8.87%	8.72%	8.59%	8.51%	8.58%	8.64%

Q4. Use Hamadas equation to determine the optimum.

Q5. Should L3 Harris Technologies take on more debt, repurchase stock, have a seasoned equity offering? Justify your answers

Q6. What does this capital structure of L3 Harris Technologies below mean?

Capital Structure
Total Debt to Total Equity	57.56
Total Debt to Total Capital	36.53
Total Debt to Total Assets	24.86
Long-Term Debt to Equity	57.56
Long-Term Debt to Total Capital	36.53

Q7. What are your conclusions?