Answer Happy

A firm has determined its cost of each source of capital and optimal capital structure, which is shown below Market After-Tax Source of Capital Proportions Cost Long-term debt 496 5% Preferred stock 10 14 Common stock equity 45 22 Other things remaining constant, if the firm were to shift toward a capital structure with the weighted average cost of capital will be higher 60% long for dett, 30% common stock, and 10% preferred stock 60% long-term deb, 20% common stock, and 20% preferred stock 45% long-term debt, 40% common stock, and 15% preferred stock 20% long form dobit, 60% common stock, and 20% preferred stock