WACC and Optimal Capital Structure F. Pierce Products Inci is considering changing its capital structure, F. Pierce currently has no debt and no preferred stock, but it would like to add some debt to take advantage of low interest rates and the tax shield. Its investment banker has indicated that the pre-tax cost of debt under various possible capital structures would be as foliows: - Use the exact value of 2/3 in your calculations. F. Pierce uses the CNPM to estimate its cost of common equity, fs and at the time of then analaysis the risk-free rate is J. Th, the market risk premium is B\%, and the company's tax rate is 40%. F. Plerce estimates that its beta now (which is "unleyered" because it currently has no debt) is 1.3. Based on this information, What is the firm's optimal cepital structure, and what would be the weighted average cost of cepital of the optimal capical structure? Do not round intermediate calculations. Round your answers to two of cimal places. Debt: Equity: 4 WACC