Need help with this project, This is for Microsoft Corp

The OCS project requires you to determine the optimum capital structure.

• Use the "Sample Combination WACC and OCS Spread Sheet" as a model.
• Your table will likely not be identical since it depends on what your capital structure is now.
• What was the existing capital structure for your firm? Do you believe it was optimum?
• Use Hamada's equation to determine the optimum.
• Should your company take on more debt, repurchase stock, have a seasoned equity offering? Justify your answers

Optimum Capital Structure Problem (Millions of Dollars Except Per Share Data) NUMBERS IN RED MUST BE INPUTTED, NUMBERS IN BLUE ARE CALCULATED Input Data (Millions Except Per Share Data) Data From: Tax rate 11% Debt (D) $74,243,000,000.00 Number of shares (n) 7,753,000,000 Stock price per share (P) $151.38 Capital Structure (Millions Except Per Share Data) Market value of equity (S = P x n) $1, 173,649, 140,000.00 Total value (V = D + S) $1,247,892, 140,000.00 Percent financed with debt (W. = D/V) 5.9% Percent financed with stock (w= = S/) 94. 1% Cost of Capital Data From Cost of debt (ra) 5.73% Beta (b) 1.08 Risk-free rate ([RF) 4.00% Market risk premium (RPM) 5.50% Cost of equity ([= = [RF + b x RPM ) 9.94% Cost of Equity from Dividend Growth Model Future Dividend Growth Rate 0.15% Last Dividend $ 0.3931 Share Price $ (4/5/13) 151.38 Cost of Equity from Dividend Growth Model 0.41% Cost of Equity from Bond Plus Markup Cost of debt 5.73% Risk Markup 7.14% Cost of Equity from Bond Plus Markup 12.87% Average rs 7.7% WACC 7.58%