U$.$S$.$ Robotics Inc. is considering changing its capital structure to $60\%$ debt and $40\%$ equity. Increasing the firm's level of debt will cause its before$-$tax

cost of debt to increase to $8\%.$ Use the Hamada equation to unlever and relever the beta for the new level of debt. What will the firm's weighted

average cost of capital $($WACC$)$ be if it makes this change in its capital structure? $($Hint: Do not round intermediate calculations.$)$

Which of the following statements regarding a firm's optimal capital structure are true? Check all that apply.

The optimal capital structure minimizes the firm's WACC.

The optimal capital structure maximizes the firm's EPS.

The optimal capital structure maximizes the firm's stock price.

The optimal capital structure minimizes the firm's cost of equity.

The optimal capital structure minimizes the firm's cost of debt.