WACC and Optimal Capital Structure Pere Products in conding changing its capital structure. Perce currently has no debt and no preferred stock, but it would like to add some debt to take advantage of the tax shek. It investment banker tos indicated that the pre-tax cost of debe under various possible capital structures would be as follows: Market Debt to Market Equity to Market Debt to Before Tax Cost of Value Ratio (wa) Value Ratio (w.) Equity Ratio (1)/S) Debt (va) 0.0 10 0.00 6.07% 0.10 0.00 0.1111 0.20 0.00 0.2500 70 010 0.70 0.4286 1.2 0.40 0.660 10.0 Perceuses the CAPM to estimate its cost of common equity and at the time of the way the tree rate 646, the market rik premium is 8%, and the company's tax rates 35. Pero estimates that its bet now (which is unlevered bec corrently no debit) is 1.3. Based on this information, what is the firm's optimal capital structure, and what would be the weighted average cost of capital at the optimal capital structure Do not round Intermediate calculations, Round your answers to two decimal places Debt 0.60 Equity WACC