Problem 22-10 The financial manager has determined the following schedules for the cost of fund Cost of Debt Cost of Equity 11% Debt ratio 0% 10 30 12 13 50 Determine the firm's optimal capital structure Round your answer to two deomal places The optimai capital structure consists ofC.3%debt resuting in the cost elgetal egial to 0 h. Construct a simple pro forms belance sheet that shows the em's optimal combination of dett and equity for its ourrent vel of assets Round your answers to the nearest doller $400 inhons of $108 for six years, Shoud the fem make the investment? Lse Appendix O to answer the question, Round your answer to the nearest whole number The investment shoud be made since the imernal rate of return tht balance sheet acpear? Round your answors to the nearest ar d. If the firm makes this adstional investment, how should its Assets Debt Equity e. If the firm is operating with its optimal capital structure and 5500 asset vieias 20.0 percent, what retum wi the stockhoiders earn on their investment in the asset? Round your answer to two b. Construct a simple pro forma balance sheet that shows the firm's optimal combination of debt and equity for its current level of assets. Round your answers to the nearest dolar Balance Sheet Debt Equity Assets $400 c. An investment costs $500 and offers annual cash infows of $108 for six years. Should the firm make the investment? Use Appendix D to answer the question. Round your answer to the rearest whole number The investment should be made since the internal rate of retum that %C the cost of capital. d. If the tem makes this additional investment, how should its balance sheet appear? Round your answers to the nearest doltlar Balance Sheet Assets Debt Equity e the fm is operating with its optimal capital structure and a ssoo asset yields 20.0 percent, what return wil the stockholders earn on their investment in the asset? Raund your answer to two decmal places Check My Work (s remaining