Fazal textile: Fazal textile is well-known company in Pakistan which is producing different type of cloth in Pakistan.

Past year companys CEO decide to increase the capital of company though increase the proportion of debt in company during that time company have 3000000 total equity and 1983450 of total debt and company decide to increase the proportion of debt in a way like, take 10% debt at the rate of 4% cost, borrow 15% at the cost of 4.9%, in the same way take 23% debt at 6% cost 30% debt take 7% cost when company was going to take such kind of decision fazal textile have 234567 earning s before tax 100000 number of shares 4.3 earnings per share 34 price per share and market risk was 1.2 t- bill rate was 13.5% and average market return was 22%.

Requirements: Optimal capital structure of Fazal textile?