(6) What is the capital structure that minimizes CD's WACC? Amount D/Capital E / Capital D/E...

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(6) What is the capital structure that minimizes CD's WACC? Amount D/Capital E / Capital D/E Levered Borrowed Ratio Ratio Ratio Beta $0 0.0000 0.0000 0.0000 1.25 rs 15.00% rd $250,000 0.1250 12.5000 0.1430 1.38 d (1-T) WACC 0.00% 15.78% 8.0% 6.00% $500,000 0.2500 25.0000 0.3333 1.56 16.86% 9.0% 6.75% $750,000 0.3750 37.5000 0.6000 1.81 $1,000,000 0.5000 50.0000 1.0000 2.19 18.36% 11.5% 8.63% 20.64% 14.0% 10.50% (6) What is the capital structure that minimizes CD's WACC? Amount D/Capital E / Capital D/E Levered Borrowed Ratio Ratio Ratio Beta $0 0.0000 0.0000 0.0000 1.25 rs 15.00% rd $250,000 0.1250 12.5000 0.1430 1.38 d (1-T) WACC 0.00% 15.78% 8.0% 6.00% $500,000 0.2500 25.0000 0.3333 1.56 16.86% 9.0% 6.75% $750,000 0.3750 37.5000 0.6000 1.81 $1,000,000 0.5000 50.0000 1.0000 2.19 18.36% 11.5% 8.63% 20.64% 14.0% 10.50%