Question: Debt Amount and ROE Analysis: Expected Coefficient ROE SD of ROE of variation All Equity 14.0% 1.6% 0.12 25% Debt 16.3% 2.2% 0.13 50% Debt

Debt Amount and ROE Analysis: Expected Coefficient ROE SD of ROE of variation All Equity 14.0% 1.6% 0.12 25% Debt 16.3% 2.2% 0.13 50% Debt 21.0% 3.3% 0.16 75% Debt 35.0% 6.6% 0.19 Debt Amount and Stock Price / CCC Analysis: Debt Amount Stock Price CCC $0 $1.400 15.0% 5,000,000 $1.492 14.1% 10,000,000 $1.539 13.6% 15,000,000 $1.538 13.7% 20,000,000 $1.490 14.1% what is the optimal amount of debt

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