Question: ABC voftware in trying to establysh its eptimal capital structure. It curvery has 3 5 % debt and 6 5 % equity. However, the firm

ABC voftware in trying to establysh its eptimal capital structure. It curvery has 35% debt and 65% equity. However, the firm CEO believes that the form should une more debe. The rob-flee rate in 4.5 l and the marker rivl previum is 6%.
Ausume that the form changed its capala structure to 50% debe and 50% aguly
Hew much should be the form's levered stock bets with the new capitud itsuchure?
Finder your answer in the following formal: 122.
Hint 81. Answer is between 1.23 and 1.72
ABC voftware in trying to establysh its eptimal

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