Kelso Electric is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 600,000…

6.     Kelso Electric is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 600,000 shares of stock. The debt and equity option would consist of 300,000 shares of stock plus $4,500,000 of debt with an interest rate of 10 percent.