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Seduak has estimated the costs of debt and equity capital for various proportions of debt in its capital structure. % Debt After tax cost of
Seduak has estimated the costs of debt and equity capital for various proportions of debt in its capital structure.
% Debt | After tax cost of debt | Cost of equity |
0% | - | 13.0% |
10 | 5.4% | 13.3 |
20 | 5.4 | 13.8 |
30 | 5.8 | 14.4 |
40 | 6.3 | 15.2 |
50 | 7.0 | 16.0 |
60 | 8.2 | 17.0 |
Base on these estimates, determine Seduak's optimal capital structure.
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