Problem 21-03 A firm's current balance sheet is as follows: Assets $ 150 Debt $ 45 Equity $ 105 a, What is the firm's weighted-average cost of capital at various combinations of debt and equity, given the following information? Round your answers to one decimal place. Debt/Assets After-Tax Cost of Debt Cost of Equity Cost of Capital 0 % 6% 12% 10 12 6 9% 20 6 14 94 30 7 15 40 8 16 9% 50 10 16 % 60 11 % 17 b. Construct a pro forma balance sheet that indicates the firm's optimal capital structure. Choose the best structure from the options analyzed in porta. Compare this balance sheet with the firm's current balance sheet, Round your answers to the nearest dollar Assets $ 150 Debt Equity What course of action should the firm take? Round your answer to the nearest whole number. Since the firm is currently using should substitute some equity for debt. V % debt financing, it is not at its optimal capital structure and