3. Given the following information, fill out the following table and determine what should be the...

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3. Given the following information, fill out the following table and determine what should be the optimal capital structure for Concours Corp. The company has $10 million in assets, a marginal tax rate of 20%, and each million in debt used causes Rd to increase by 1.0% and Rs to increase by .8%. (5 pts) Debt 0 $1 mill 8.5% $2 mill $3 mill $4 mill $5 mill $6.mill $7 mill $8 mill Rd Rs 11% WACC 11% 3. Given the following information, fill out the following table and determine what should be the optimal capital structure for Concours Corp. The company has $10 million in assets, a marginal tax rate of 20%, and each million in debt used causes Rd to increase by 1.0% and Rs to increase by .8%. (5 pts) Debt 0 $1 mill 8.5% $2 mill $3 mill $4 mill $5 mill $6.mill $7 mill $8 mill Rd Rs 11% WACC 11%

Answer rating: 100% (QA)

Here are the stepbystep calculations 1 Rd without debt 11 2 Rs without deb... View the full answer