In considering the most desirable capital structure for a company, the following estimates of the cost of debt capital (after tax) have been made at various level of debt-equity mix: Debt as a Equity as a percentage Cost of Debt Cost of Plans percentage of total of total capital Equity capital employed employed (Kd) (ke) Plan 1 40% 60% 8% 17% Plan - 11 60% 40% 9.5% 20% You are required to find out the weighted average cost of capital of the firm for different proportions of debt (two plans separately). (2 Marks)