Refer to AA Enterprises. Calculate the optimal weighted average cost of capital (WACC), i.e., the one that optimizes the value of the firm (do not round intermediate steps. Report with 2 decimal places, such as 32.10%) Percent financed Debt-to-equity Bond Percent financed After-tax With debt (wa) with equity (we) ratio (D/S) rating cost of debt 0.10/0.90 = 0.11 0.10 0.90 AA 4.2% 0.20/0.80 = 0.25 0.20 0.80 A 4.32 0.30/0.70 = 0.43 0.30 0.70 A 4.80 0.40/0.60 = 0.67 0.40 0.60 BB 5.28 The company's tax rate is 40 percent. The company uses the CAPM to estimate its cost of common equity, re. The risk-free rate is 5% and the market risk premium is 6%. AA estimates that if it had no debt its beta would be 1.0. Question 25 (2 points) 4) Listen Refer to AA Enterprises. What is the company's optimal capital structure, i.e., the structure that maximizes the value of the company? Wd = 0.4; We = 0.6 wd = 0.2; We = 0.8 Wd = 0.3; We = 0.7