Q4. Alms Corporation is trying to determine its optimal capital structure using the following table. Debt/Assets Equity/Assets Debt/Equity B-T Cost of Ratio (wa) Ratio (w.) Ratio (D/E) Debt (ka) 00.2 00.4 0.6 0.8 00.6 00.4 0.25 0.67 1.1.50 8.00% 110.00% 142.00% 0.2 +4.00 1 15.00% The company estimates that the risk-free rate is 5%, the market return is 6%, and its tax rate is 40%. It estimates that if it had no debt, its beta, would be 1. Based on the information, what is the firm's optimal capital structure, and what would the WACC be at the optimal capital structure? 0.8 BL rs Wacc