Question $1,$ assume:

Tax $25\%$

Bank rate for a loan tranche up to $$10$ million, BL$1$ Bank rate for a loan tranche over $$10$ million up to $$25$ million, BL$2$ Private Equity, PE Government funds are available up to $$5$ million, GE Government Grant up to $$1$ million, GG BL$1$ BL$2$ PE GE GG

Scenario $1$A $10\mathrm{.}0\%15\mathrm{.}0\%10\mathrm{.}0\%5\mathrm{.}0\%1$ Million

Scenario $2$A $10\mathrm{.}0\%15\mathrm{.}0\%11\mathrm{.}0\%5\mathrm{.}0\%1$ Million

Scenario $3$A $10\mathrm{.}0\%15\mathrm{.}0\%12\mathrm{.}0\%5\mathrm{.}0\%1$ Million

Scenario $4$A $10\mathrm{.}0\%15\mathrm{.}0\%13\mathrm{.}0\%5\mathrm{.}0\%1$Million

Scenario $5$A $10\mathrm{.}0\%15\mathrm{.}0\%14\mathrm{.}0\%5\mathrm{.}0\%1$ Million

Scenario $6$A $10\mathrm{.}0\%15\mathrm{.}0\%15\mathrm{.}0\%5\mathrm{.}0\%1$ Million

Scenario $7$A $10\mathrm{.}0\%15\mathrm{.}0\%16\mathrm{.}0\%5\mathrm{.}0\%1$ Million

Scenario $8$A $10\mathrm{.}0\%15\mathrm{.}0\%17\mathrm{.}0\%5\mathrm{.}0\%1$ Million

Scenario $1$B $15\mathrm{.}0\%17\mathrm{.}5\%10\mathrm{.}0\%9\mathrm{.}0\%1$ Million

Scenario $2$B $15\mathrm{.}0\%17\mathrm{.}5\%11\mathrm{.}0\%9\mathrm{.}0\%1$ Million

Scenario $3$B $15\mathrm{.}0\%17\mathrm{.}5\%12\mathrm{.}0\%9\mathrm{.}0\%1$ Million

Scenario $4$B $15\mathrm{.}0\%17\mathrm{.}5\%13\mathrm{.}0\%9\mathrm{.}0\%1$ Million

Scenario $5$B $15\mathrm{.}0\%17\mathrm{.}5\%14\mathrm{.}0\%9\mathrm{.}0\%1$ Million

Scenario $6$B $15\mathrm{.}0\%17\mathrm{.}5\%15\mathrm{.}0\%9\mathrm{.}0\%1$ Million

Scenario $7$B $15\mathrm{.}0\%17\mathrm{.}5\%16\mathrm{.}0\%9\mathrm{.}0\%1$ Million

Scenario $8$B $15\mathrm{.}0\%17\mathrm{.}5\%17\mathrm{.}0\%9\mathrm{.}0\%1$ Million

Note $1$: Bank will not lend $>$ $$25,000,000$

Note $2$: Government will not invest $>$ $$6,000,000.$

Note $3$: you only need to consider WACC cases with tax shield in place.

Calculate Op timal Capital Stacks and W AC C for the fir m raising $$50$ million for each scenario outlined above for

$1.$ Case of available Government Supports $($GE and GG$)$

$2.$ Case of no Government Supports at all

$3.$ Case of only Government Equity

Provide visualization$($s$)$ and analysis of your results. Specifically, discuss how valuable are Government Grants and Government Equity are to the company$/$

Discuss, how do changes in interest rates across bank loans, Private Equity and Government funds change $/$ influence company WACC and optimal capital structure?