Your team is discussing four alternatives for financing a project. Using the information below, determine which alternative is the most optimal capital structure.

Alternative	%Debt	k(d)	k(e)	tax rate
A	10%	4%	9%	24%
B	25%	4%	10%	24%
C	40%	4.5%	12.5%	24%
D	60%	5%	17%	24%

A

B

C

D