WACC and Optimal Capital Structure Ferce Products Inc. is considering changing its capital structure, 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. It investment banker has indicated that the pre-tax cost of delt under various possible capital structures would be as follows: Market Debt Market Equity Market Debt to Value to Value to Equity Ratio Ratio Ratio (wa) (w.) (D/S) Before Tax Cost of Debt (ra) 1.0 0.0 0.00 6.0% 0.2 0.6 0.25 7.0 0.4 0.6 0.67 8.0 0.6 0.4 1.50 9.0 0.8 0.2 4.00 10.0 Use the exact value of 2/3 in your calculations F Dierce uses the CAPM to estimate it cost of common equity and at the time of the analysis the risk free rate is 79%, the market risk premium is 89, and the company's tax rates 30%. F. Pierce estimates that its beta now (which is unlevered" because it currently has no debt)is 12. Based on this information, what is the firm's opomat capital structure, and what would be the weighted average cost of capital at the optimal capital structure? Do not round intermediate calculations. Round your answer to two decimal places bebt Louit WACC