Suppose that TRM Consulting Services has discussed

its need for capital with its investment bankers. The

bankers have estimated that TRM can raise new funds

in the capital markets under the following conditions:

Using the information from the previous problem,

alculate each of the break$-$points, including the break$-$

point due to retained earnings.

reate a chart of TRM$\text{'}$s marginal WACC curve using the

market$-$ value weights. Make sure that it is a perfect

step function.