The optimal capital structure has been achieved when the: A. debt-equity ratio is equal to 1. B. debt-equity ratio results in the highest possible weighted average cost of capital. C. weight of equity is equal to the weight of debt. D. debt-equity ratio results in the highest possible equity value. E. debt-equity ratio results in the highest possible firm value.

After graduation, you plan to work for dynamo corporation for 12 years and then start your own business. you expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12). the first deposit will be made a year from today. in addition, your grandfather just gave you a $32,500 graduation gift which you will deposit immediately (t = 0). if the account earns 9% compounded annually, how much will you have when you start your business 12 years from now?