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The directors of Company F are trying to identify the best capital structure for the company from two options. Their main aim is to choose

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The directors of Company F are trying to identify the best capital structure for the company from two options. Their main aim is to choose the capital structure which has the optimum Weighted Average Cost of Capital (WACC). Part (a) For each of the two capital structure options outline below, please calculate the following: - Equity beta - Cost of equity - Cost of debt - Weighted average cost of capital Part (b) Once you have completed the two WACC calculations, please complete the summary table to show the WACC for each option and identify which capital structure provides the optimum WACC and which option the directors should choose. Part (a) Please complete the calculations outline below for each option Weighted average cost of capital Weighted average cost of capital

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