Omni corporation has a target capital structure of 60% equity and 40% debt. The schedule of financing cost for the Omni corporation is shown in the figure below.

schedule for capital costs for Omni

amount of new debt in millionsafter tax cost of debtamount of new equity in millionscost of equity 0 to 994.2%0 to 1996.5% 100 to 1994.6%200 to 3998.0% 200 to 2995.0%400 to 5999.5%

calculate the break points for Omni corporation and graph the marginal cost of capital schedule.