Value of Value of Stock Amount Borrowed Equity the Firm Price WACC EPS O 18.460 18,460 18.46 13.0% 2.40 $ 2 Million 17.320 19.320 19.32 12.42 2.55 $ 4 Million 15.830 19,830 19.83 12.10 2.70 $ 6 Million 14,020 20,020 20.03 11.99 2.54 $ 8 Million 16,570 24.570 24.57 11.50 3.04 $10 Million 12.000 22,000 22.00 12.00 3.20 NOTE: Value of the Firm is equal to the Amount Borrowed plus the Value of Equity