QUESTION $4$

A Company with net operating earnings of shs $300,000$ is attempting to evaluate a number of possible capital structures, given below. Which of the capital structures will you recommend and why? Show your analysis.

$\backslash$table$[[\backslash$table$[[$Capital$],[$structure$]],$Debt,$\backslash$table$[[$After tax$-$Cost of$],[$debt $(\%)]],\backslash$table$[[$Cost of equity$],[(\%)$