Question: For Problem use a spreadsheet to (a) Determine the best D-E mix (b) Determine the best D-E mix if the cost of debt capital increases

For Problem use a spreadsheet to

(a) Determine the best D-E mix
(b) Determine the best D-E mix if the cost of debt capital increases by 10% per year, for example, 13.0% increases to14.3%.

Debt capital Project P Rate Equity capital Percent Rate 100% 14.5% 70 13.0 65 12.0 50 1.5 35 20 12.4 3096 7.8% 35 7.8 50 7.9 65 80 12.5 100 12.5 9.9 9.8

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