Question: Your boss, whose background is in financial planning, is concerned about the companys high weighted average cost of capital (WACC) of 29%. He has asked

Your boss, whose background is in financial planning, is concerned about the companys high weighted average cost of capital (WACC) of 29%. He has asked you to determine what combination of debt-equity financing would lower the companys WACC to 18%. If the cost of the companys equity capital is 6% and the cost of debt financing is 27%, what debt-equity mix would you recommend?

the debt-equity mix should be_____ % debt and____ % equity financing.

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