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please show in Excel Boom Mechanics is trying to determine its optimal capital structure, which now consists of only debt and common equity. The firm

please show in Excel
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Boom Mechanics is trying to determine its optimal capital structure, which now consists of only debt and common equity. The firm does not Currently use preferred stock in its capital structure, and it does not plan to do so in the future. Its treasury staff has consulted with investment Dankers. On the basis of those discussions, the staff has created the following table showing the firm's debt cost at different debt levels: Debt-to-Equity-to Debt-to- Capital Capital Equity Bond Before-Tax Cost of After Tax Cost of Ratio Ratio Ratio Cost of Beta WACC Rating Debtv.) Equity Debt (wa) (W) (D/E) 0 1 A 4.00% 0.2 0.8 BBB 5.00% 0.4 0,6 BB 8.00% 0.6 0.4 10.00% 0.8 0.2 D 13.00% Boom uses the CAPM to estimate its cost of common equity, rs, and estimates that the risk --free rate is 2%, the market risk premium is 6%, and its tax rate is 25%. Boom estimates that if it had no debt, its "unlevered" beta, bu, would be 1.2 What is the firm's optimal capital structure, and what would be its WACC at the optimal capital structure? Boom uses the CAPM to estimate its cost of common equity, rs, and estimates that the risk-free rate is 2% the market risk premium is 6%, and its tax rate is 25%. Boom estimates that if it had no debt, its "unleveres beta, bu, would be 1.2. What is the firm's optimal capital structure, and what would be its WACC at the optimal capital structure? Risk Free MRP Tax rate Unlev B 2% 6% 25% 1.20 5 16 Optimal Weights 7 Debt Equity WACC

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