Question: (b) Consider the same problem except that now the firm pays only 9% corporate tax rate. Calculate the weighted average cost of capital for

(b) Consider the same problem except that now the firm pays only

(b) Consider the same problem except that now the firm pays only 9% corporate tax rate. Calculate the weighted average cost of capital for KLM Corporation under the three separate capital structures, i.e. Current, Mix 1 and Mix 2. Write your answers up to 4 decimal places of accuracy, e.g. 15.6789% is good, whereas 15.68% is not. Current Weighted average cost of capital (rwacc) Capital Structure Financing Mix 1 Financing Mix 2 i. Which of the three capital structures provides an optimal financing mix: ii. What is the WACC at the optimal capital structure?

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