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The Board of Grant Metal Inc has asked you to review its capital structure and determine ways to reduce the weighted average cost of capital Select data from the most recent tacial statements are shown in Exhibit B. You expect the economy to do well in the coming two years which will positively affect the industry and the company to take advantage of this forecast you recommend Select which will let) Exhibit B Current stock price shares outstanding face value of debt outstanding recently quoted price on debt, as of par current yield to maturity on debt frisk free rate stock beta market risk premium corporate tax rate $25.00 1.200,000 $4,000,000 98.00% 7.00% 2.50% 0.95 8.00% 21.00% Question 7 The Board of Grant Metal Inc has asked you to review its capital structure and determine ways to reduce the weighted average cost of capital Select data from the most recent financial statements are shown in Exhibit B. You expect the economy to do well in the coming two years which will positively affect the industry and the company to take advantage of this forecast you recommend Select adding preferred stock which is more costly than equity maintaining the same De ratio reducing debt in the balance sheet increasing equity in the balance sheet increasing debt in the balance sheet $25.00 shares outstanding 1.200,000 face value of debt outstanding $4,000,000 recently quoted price on debt, as % of par 98.00% current yield to maturity on debt 7.00% risk free rate 2.50% stock beta 0.95 market risk premium 8.00% corporate tax rate 21.00% Question 7 The Board of Grant Metal Inc has asked you to review its capital structure and determine ways to reduce the weighted average cost of capital. Select data from the most recent financial statements are shown in Exhibit B. You expect the economy to do well in the coming two years which will positively affect the industry and the company, to take advantage of this forecast you recommend Select which will select increase WACC reduce WACC Exhibit B leave WACC unchanged Current stock price # shares outstanding face value of debt outstanding recently quoted price on debt, as % of par current yield to maturity on debt risk free rate stock beta market risk premium $25.00 1.200,000 $4.000.000 98.00% 7.00% 2.50% 0.95 8.00% 21.00% corporate tax rate