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Please give the answer below.

?Wd?

?We?

?WACC?

Black Keys Manufacturing is considering making a change to its capital structure in hopes of increasing its value. The company's capital structure consists Of debt and common stock. In Order to estimate the cost Of debt, the company has produced the following table: ercent nanced ith debt (w d) .2 .3 .4 .5 ercent nanced ith equity .9 .8 .6 .5 ond ting efore-tax st of debt 8.00% 8,250/0 Levered eta Cost of e ACC The company uses the CAPM to estimate its cost of common equity. rs. The risk-free rate is 5% and the market risk premium is 6%, Black Keys estimates that if it had no debt its beta would be 1 S, (Its "unlevered beta," blJ, equals 1 S,) The company's tax rate, T, is 25%. On the basis of this information, what is Black Keys' optimal capital structure. and what is the firm's cost of capital at this O Wd=O.1; we = 0.9; WACC= 13.80% o we = 0.8; WACC= 13.64% O we 0.7; WACC = 13.07% Click Save and Submit to save and submit. Click Save All Answers to save all answers.