$$ The previous capital structure for a firm is listed below

Capital Structure $($Millions Except Per Share Data$)$

Market value of equity $($S $=$ P $$ n$)$ $$106,513,172,000\mathrm{.}00$

Total value $($V $=$ D $+$ S$)$ $$131,103,172,000\mathrm{.}00$

Percent financed with debt $($wd $=$ D$/$V$)18\mathrm{.}8\%$

Percent financed with stock $($ws $=$ S$/$V$)81\mathrm{.}2\%$

$1.$ Use Hamada$$s equation to determine the optimum.

$2.$ Should your company take on more debt, repurchase stock, have a seasoned equity offering? Justify your answers