11.Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.56 percent, a par value of $1,000 per bond, matures in 5 years, has a total face value of $3.9 million, and is quoted at 106 percent of face value. The second issue has a coupon rate of 6.18 percent, a par value of $2,000 per bond, matures in 24 years, has a total face value of $8.2 million, and is quoted at 94 percent of face value. Both bonds pay interest semiannually. The company's tax rate is 40 percent. What is the firm's weighted average aftertax cost of debt?

15. The optimal capital structure of a company:

A. maximizes the value of that company's marketed claims

B. minimizes the company's tax payments

C. minimizes both the marketed and nonmarketed claims against that company

D. equates the company's marketed and nonmarketed claims

E. eliminates all nonmarketed claims against that company