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mistake Question 3 0/1 m Consider this table for firm YY: Weight of Equity (E/(D+E)) 0% 40% 60% 90% TWACC 12% 11% 13% 19% What

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mistake Question 3 0/1 m Consider this table for firm YY: Weight of Equity (E/(D+E)) 0% 40% 60% 90% TWACC 12% 11% 13% 19% What is the firm's Optimal Weight of Debt? Choose one answer and provide one reason. 40% Because maximum WACC coincides with the firm's maximum growth potential Because this maximizes the PV of the firm's future Free Cash Flows Because this produces the highest EV/PE ratio. 60% 90% Because this minimizes the PV of the firm's future Free Cash Flows

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