Question: Your boss, whose background is in financial planning, is concerned about the company's high weighted average cost of capital (WACC) of 28%. He has asked

Your boss, whose background is in financial planning, is concerned about

Your boss, whose background is in financial planning, is concerned about the company's high weighted average cost of capital (WACC) of 28%. He has asked you to determine what combination of debt-equity financing would lower the company's WACC to 16%. If the cost of the company's equity capital is 6% and the cost of debt financing is 28%, what debt-equity mix would you recommend? The debt-equity mix should be % debt and % equity financing

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