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The finsnolal manager has determined the following schedules for the cost of funds: a. Determine the firms optimal capital structure. Mound your answer to tao

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The finsnolal manager has determined the following schedules for the cost of funds: a. Determine the firms optimal capital structure. Mound your answer to tao decimal placed. The optimal capital structure consists of W debt resulting in the cost of capital equal to b. Construct a smple pro forma balance sheet that shows the firm s optimal combination of debt and equity for its current level of assets Hound your answers to the nearest dollist. C. An investment costs $500 and offers annual caph infows of $119 for five years, Should the firm make the investmenth use Aopendia 0 to ansmer the guestion, Hochd your shywer to the nearest ahole number. The investment be made since the imernal rate of refurn that is the cost of captal d. If the firm makes thin asditionel incettment, how shoudd its balance shect spgear? Round you ankners to the netarest dollar. D. Construct a simple pro rorma balance sneet that snows the tirms optimal combination or aeot and equity for its current iever or assets. Round your answers to the nearest dollar. c. An investment costs $500 and offers annual cash inflows of $119 for five years. Should the firm make the investment? Use Appendix D to answer the question. Round your answer to the nearest whole number. The investment be made since the internal rate of return that is % the cost of capital. d. If the firm makes this additional investment, how should its balance sheet appear? Round your answers to the nearest dollar. e. If the firm is operating with its optimal capital structure and a $500 asset yields 10.0 percent, what return will the stockholders earn on their investment in the asset? Round your answer to two decimal places. %

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