Optimal Cost of Capital: ExxonMobil 3
I am searching for the Optimal Cost of Capital for ExxonMobil. Therefore I need:
1/ The optimal debt ratio --> is the industry debt ratio the optimal ratio ? why ? I would say that the optimal debt ratio is the one optimising the cost of capital
2/ Once you have a debt ratio target, you need to adapt your Ke and Kd. Ke is done through Beta L. My issue is with adapting Kd. The firm is AAA, and interest coverage is more than 500... by simulating the coverage it is always bigger than 8, then it will remain a AAA.

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is there any other way to simulate Kd in function of the debt ratio than the interest coverage ?

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