29. We are considering an investment opportunity and we can choose one of the following three capital structure plans:
|
Debt |
Equity |
Cost of Debt |
Plan A |
20% |
80% |
4.1% |
Plan B |
40% |
60% |
5.0% |
Plan C |
90% |
10% |
9.4% |
The unlevered beta is 1, tax rate is 35%. Market return is 10.9% and risk-free rate is 2.6%.
The optimal WACC is
_____%.