Suppose that Mr$.$ Dubinski has obtained from Blaine's banker the quotes bellow for default

spread over last $10-$year Treasury bonds $($note that these differ from the more general corporate

bond yield in the case Exhibit $4.)$ what do these quotes imply about BKI cost of debt at the

various debt level and credit ratings? Compute BKI's weighted average cost of capital for each of

the indicated debt levels. What do your calculation imply about optimal capital structure? Based

on these calculations, how may shares should Blaine purchase and at what price?