Question: Find the lowest WACC. QUESTION 1 A company has the following information: Debt ratio Cost of debt Cost of equity 10% 6.00% 8.20% 20% 6.25%

Find the lowest WACC. QUESTION 1 A company has the following

Find the lowest WACC.

QUESTION 1 A company has the following information: Debt ratio Cost of debt Cost of equity 10% 6.00% 8.20% 20% 6.25% 8.25% 30% 6.30% 8.75% 40% 7.00% 11.00% 50% 8.00% 14.00% 60% 10.00% 19.00% Find the lowest WACC. (Enter as % units to two decimal places, ie, for 5.55% enter as 5.55 QUESTION 2 For this firm, what is the optimal debt ratio to maintain? (Enter in % units)

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