Owens Enterprises is in the process of determining its capital budget for the next fisca...

Owens Enterprises is in the process of determining its capital budget for the next fiscal year. The firm’s current capital structure, which it considers to be optimal, is contained in the following balance sheet:

Through discussions with the firm’s investment bankers, lead bank, and financial officers, the following information has been obtained:

Compute Owens’ marginal cost of capital schedule.