Scenario:As anAngel Investoryou have been asked to assess an entrepreneur's product and financing options. In your role as anAngel Investoryou focus on one year at a time. The entrepreneur asks for $100,000 immediately to purchase a diagnostic machine for a healthcare facility. The entrepreneur hopes to be financed with 60 percent debt and 40 percent equity. As the entrepreneurs' venture capital partner, you assign a cost of equity of 15% and a cost of debt at 10%. You require a Return on Investment (ROI) of 8%. You are using an After Tax Weighted Average Cost of Capital (AT- WACC) model. A 35% marginal tax rate is applied.

W_e-The weight or Proportion of Equity in the capital structure

W_d-The weight or Proportion of Debt in the capital structure

K_e-The cost of Equity

K_d-The after tax cost of Debt

The after tax cost of Debt=10% x1-tax rate%

The after tax cost of Debt=10% x (1-35%)

The after tax cost of Debt=10% x 0.65=6.5%

AT- WACC=(40% x 15%) + (60% x6.5%); which is the same as (0.4 x 15%) + (0.6 x6.5%)

AT- WACC=6% + 3.9%

AT- WACC=9.9%

My Question?

Calculate and Explain what the entrepreneur's financial restructuring AT- WACC (% Debt and % Equity) would be in order for a positive ROI. I need help calculating the actual calculation of the percent of the debt and equity.