Jon Stark ,Inc. Has estimated the costs of debt and equity capital for various proportions of debt in its capital structure. % of Debt Cost of Debt Cost of Equity 0% - 13.0% 10% 5.4% 13.3 20% 5.6 13.8 30% 5.8 14.4 40% 6.3 15.2 50% 7.0 16.0 60% 8.2 17.0

WEIGHTED AVERAGE COST OF CAPITAL = WEIGHT OF DEBT X COST OF DEBT + WEIGHT OF EQUITY X COST OF EQUITY % of Debt Cost of Debt Cost of Equity WACC 0% - 13 13.000 10% 5.4 13.3 12.51 20% 5.6 13.8 12.16 30% 5.8 14.4 11.82 40% 6.3 15.2 11.64 50% 7 16 11.5 60% 8.2 17 11.72 PLEASE APPRECIATE THE WORK

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Jon Stark ,Inc

Finance Nov 27, 2020

Jon Stark ,Inc. Has estimated the costs of debt and equity capital for various proportions of debt in its capital structure.

% of Debt	Cost of Debt	Cost of Equity
0%	-	13.0%
10%	5.4%	13.3
20%	5.6	13.8
30%	5.8	14.4
40%	6.3	15.2
50%	7.0	16.0
60%	8.2	17.0

Expert Solution

WEIGHTED AVERAGE COST OF CAPITAL = WEIGHT OF DEBT X COST OF DEBT + WEIGHT OF EQUITY X COST OF EQUITY

% of Debt	Cost of Debt	Cost of Equity	WACC
0%	-	13	13.000
10%	5.4	13.3	12.51
20%	5.6	13.8	12.16
30%	5.8	14.4	11.82
40%	6.3	15.2	11.64
50%	7	16	11.5
60%	8.2	17	11.72

PLEASE APPRECIATE THE WORK

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