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YE Health has obtained the following estimates for its costs of debt and equity at various capital structures: Choice Percent Debt (%) ATKd Ke A
YE Health has obtained the following estimates for its costs of debt and equity at various capital structures:
Choice | Percent Debt (%) | ATKd | Ke |
A | 0 | 15% | |
B | 25 | 4.40% | 17% |
C | 50 | 6% | 19% |
D | 75 | 9% | 22% |
E | 90 | 15 % | 28% |
What is the firm's optimal capital structure choice?
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