Question: Hi please help with this short question! Value of Value of Stock Amount Borrowed Eguitx the Firm Price WACC EPS 0 18,460 18,460 18.46 13.0%

Hi please help with this short question! Value of Value of

Hi please help with this short question!

Value of Value of Stock Amount Borrowed Eguitx the Firm Price WACC EPS 0 18,460 18,460 18.46 13.0% 2.40 $ 2 Million 17,320 19,320 19.32 12.42 2.55 $ 4 Million 15,830 19,830 19.83 12.10 2.70 $ 6 Million 14,020 20,020 20.03 11.99 2.54 $ 8 Million 16,570 24,570 24.57 11.50 3.04 $10 Million 12,000 22,000 22.00 12.00 3.20 NOTE: Value of the Firm is equal to the Amount Borrowed plus the Value of Equity a) Falco Inc. is considering a debt issue and is trying to determine the appropriate amount to issue. Considering the information in the table below, indicate which amount borrowed you believe to be the optimal level of debt and explain completely why

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