Instructions: Fill out the missing cells $($shaded in grey$)$ and then plot the expected return on equity, debt and WACC $($columns O to Q$)$ against the fraction you finance yourself with debt, i$.$e$.,$ D$/($A$),$ i$.$e$.$ Column N

Hints:

a$)$ The value of total firm assets $($A$)$ is just a portfolio of DEBT $($D$)$ and EQUITY $($E$)$

b$)$ Value Equity is a call option on the asset with strike price equal to the face value of debt

c$)$ Recall equity holders are protected by limited liability $($minimum value $=0)$

d$)$ Use scatter plot with smooth lines to draw the graph.