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What is the capital structure that minimizes CDs WACC? What is the value of minimum WACC? a.14.72% b.14.34% c.14.58% d.15% What is the value of
What is the capital structure that minimizes CDs WACC?
What is the value of minimum WACC?
a.14.72%
b.14.34%
c.14.58%
d.15%
What is the value of debt structure minimizes the WACC?
a.$250,000
b.$750,000
c.$1,000,000
d.$500,000
\begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline Amount & D/ Capital & E/ Capital & D/E & Levered & & & & \\ \hline Borrowed & Ratio & Ratio & Ratio & Beta & rs & rd & rd(1T) & WACC \\ \hline$0 & & & & & & - & & \\ \hline$250,000 & & & & & & 8.0% & & \\ \hline$500,000 & & & & & & 9.0% & & \\ \hline$750,000 & & & & & & 11.5% & & \\ \hline$1,000,000 & & & & & & 14.0% & & \\ \hline \end{tabular}Step by Step Solution
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