drop down for B is too much to little and debit for equity or equity for debt

drop down for C is tax deductible , not tax deductible, always paid more frequently. not a legal obligation. and higher or lower

drop down for is more or less

a. Given the following, determine the firm's optimal capital structure: Debt/Assets After-Tax Cost of Debt Cost of Equity 109 Round your answers for capital structure to the nearest whole number and for the cost of capital to one decimal place. The optimal capital structure: % debt and equity with a cost of capital of b. If the firm were using 40 percent debt and 60 percent equity, what would that tell you about the firm's use of financial leverage? Round your answer for the cost of capital to one decimal place. If the firm uses 40% debt financing, it would be using -Select financial leverage. At that combination the cost of capital is %. The firm could lower the cost of capital by substituting Select c. What two reasons explain why debt is cheaper than equity? Debt is cheaper than equity because interest expense Select In addition, equity investors bear Select risk. d. If the firm were using 20 percent debt and 80 percent equity and earned a return of 8.6 percent on an investment, would this mean that stockholders would receive less than the required return of 10.0 percent? If the firm cams 8.5% on an investment, the stockholders will earn Select than their required 10.09. What return would stockholders receive? Round your answer to one decimal place