Omani corporation is currently financed with 25% debt could be borrowed at an interest rate of 10%, and 75% equity. Management of a company is considering increasing its level of debt until it is financed with 60% debt with the same interest rate. •Suppose you are the financial manager of the company, do you will recommend to increase the level of debt up to 60% to reduce the cost of capital in the light of the following given data, and why.