for Dr.Loizeaux only

Doc,

see the attachment. its a team assignment I only need to cover one bullet. its highlieghted on teh attachement

·         d.

o    (1) Assuming that the specific financing costs do not change, what effect would a shift to a more highly leveraged capital structure consisting of 50% long-term debt, 10% preferred stock, and 40% common stock have on your previous findings? (Note: Rework parts b and c using these capital structure weights.)

o    (2) Which capital structure—the original one or this one—seems better? Why?

let me know if you have any questions Doc