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Seven different financing plans with their D-E mixes and costs of debt and equity capital for a new innovations project are summarized below. Use the
Seven different financing plans with their D-E mixes and costs of debt and equity capital for a new innovations project are summarized below. Use the data to determine what mix of debt and equity capital will result in the lowest WACC. Equity Capital Debt Capital Percentage 100 70 65 50 35 20 Rate, % 14.5 13 12 11.5 9.9 12.4 Plan Percentage | Rate% 2 3 4 5 6 7 30 35 50 65 80 100 7.8 78 7.9 9.8 12.5 12.5 DE mix of| -| %-[-1% has the lowest WACC value
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