Which capital structure will maximize the value of the firms cash flows? Calculate and discuss.

You have been tasked with determining the best capital structure for your firm, and the following options are available. Option A: 30% Debt; 70% Equity: After-Tax Cost of Debt-5%; Cost of Equity-3% Option B: 40% Debt; 60% Equity. After-Tax Cost of Debt-6%; Cost ofEquity: 10% Option C: 60% Debt; 40% Equity: After-Tax Cost of Debt = 6.5%; Cost of Equity-11%