4.6 End-of-Chapter Exercises End-of-Chapter Exercises 1. Complete the following table (assume no preferred stock is...

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4.6 End-of-Chapter Exercises End-of-Chapter Exercises 1. Complete the following table (assume no preferred stock is outstanding or to be issued), and determine the optimal level of debt: WACC TABLE 14.2 Cost of Capital Projections for Exercise 1 % Cost of After-Tax Cost of Debt Debt Debt % Equity Cost of Equity (T=25%) 9.0% 6.4% 0% 9.8% 10% 6.4% 10.4% 20% 6.9% 11.0% 30% 7.7% 12.5% 40% 8.4% 14.4% 50% 9.2% 16.8% 60% 10.0% 19.0% 70% 11.5% 25.0% 80% 13.0% 32.0% 90% 18.0% 47.0% 100% 25.0% on nreferred stock is outstanding or to be issued), an

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