The study aimed to show that the cost of capital can be used to optimize a company's capital structure. Researchers analyzed data from nine food and beverage companies in Indonesia from 2015 to 2019. They found that the overall capital structure had a significant impact on the cost of capital. Specifically, the debt to asset ratio affected the cost of capital, while the long-term debt to equity ratio and net profit margin did not. The return on investment was lower than the weighted average cost of capital, indicating that the cost of capital can be used as a benchmark for optimizing capital structure.