Question: capital structure based on the following information? Answer: Please fill in chart and pick the best Weighted Average %Debt | Cost Debt %Equity | Cost

 capital structure based on the following information? Answer: Please fill in

capital structure based on the following information? Answer: Please fill in chart and pick the best Weighted Average %Debt | Cost Debt %Equity | Cost Equity Capital 50% 5% 4.9% 4.5% 4.4% 12% 9% 8.5% 8.3% 60% 70% | 80% A. When a company adds more debt to its capital structure why does this increase the risk of the firm? B. Why does the use of operating leverage increase the potential return to stockholders

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