The after-tax cost of debt is greater than... O A. D1/(Po-F) + 8 O B. Dy/Po+ 8 O C. Both a. and b. OD. Neither a. nor b. Reset Selection Question 2 of 5 2 Points The optimal capital structure of all companies is supposed to be 50% debt and 50% equity. A. True B. False Reset Selection The cost of externally generated equity is O A. less than the cost of internally generated equity. B. the same as O C. greater than D. none of the above because more information would be needed. Reset Selection WACC 20% 19% 18% 17% 16% 15% 14% 13% 12% 115 10% 9% 8% 7% 6% 5% 4% 2% 1% 10% 2096 30% 40% 50% 60% 70% 80% 90% 100% % Debt % equity The optimal capital structure of this company is O A. 20 O B.40 O C. 60 D. 80 E. 100 %. This company's cost of equity is O A. 10 O B. 12 O C. 14 D. 16 E. 18