Biotec has estimated the costs of debt and equity capital for various proportions of debt in its capital structure:$\begin{array}{lll}\% \text { of Debt } & \text { Cost of Debt }(\%) &\text { Cost of Equity }(\%)\
35 & 5.4 & 13.8 \
40 & 5.6 & 14.0 \
45 & 5.9 & 14.3 \
50 & 6.4 & 14.7
\end{array}$
If Biotec pays a current dividend of $1.00 and expects dividends to grow at a constant rate of 7%, what is Biotec's stock price if it obtains its optimal capital structure?

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The Answer of Biotec has estimated the costs of debt and equity capital for various proportions of debt in its capital structure:$\begin{array}{lll}\% \text { of Debt } & \text { Cost of Debt }(\%) &\text { Cost of Equity }(\%)\
35 & 5.4 & 13.8 \
40 & 5.6 & 14.0 \
45 & 5.9 & 14.3 \
50 & 6.4 & 14.7
\end{array}$
If Biotec pays a current dividend of $1.00 and expects dividends to grow at a constant rate of 7%, what is Biotec's stock price if it obtains its optimal capital structure?

Biotec Has Estimated the Costs of Debt and Equity Capital