Question: Your boss, whose background is in financial planning, is concerned about the companys highweighted average cost of capital of 21%. He has asked you to

Your boss, whose background is in financial planning, is concerned about the companys highweighted average cost of capital of 21%. He has asked you to determine what combination of debtequity financing would lower the companys WACC to 13%. If the cost of the companys equity capital is 6% and the cost of debt financing is 28%, what debt-equity mix would you recommend?

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