Could use some help. Thanks

Reacher Technology has consulted with investment bankers and determined the interest rate it would pay for different capital structures, as shown below. Data for the risk-free rate, the market risk premium, an 1 estimate of Reacher's unlevered beta, and the tax rate are also shown 5 below. Based on this information, what is the firm's optimal capital 5 structure and what is the weighted average cost of capital at the optimal 7 structure? 8 9 Percent Before- Input Data 10 Financec tax Risk-free rate 4.5% with Cost 11 Debt Debt Market risk premii 5.5% 12 (wd) (rd) Unlevered beta 0.8 13 0% 6.0% Tax rate 40.0% 14 10% 6.1% 20% 7.0% 16 30% 8.0% 17 40% 10.0% 18 50% 12.5% 19 60% 15.5% 20 70% 18.0% 21 22 Fill in formulas in the yellow cells to find the optimum capital structure, 23 24 ebt/Valuquity/Valpebt/Equity-T Cost Levered Cost of Beta Equity WACC tatio (wd latio (ws :atio (wd/w Debt (rd) 25 26 0% 1.0 0.00 27 10% 0.9 0.11 15 00 n2 00 Fill in formulas in the yellow cells to find the optimum capital structure. WACC ebt/Valu quity/Valpebt/Equity-T Cost Levered Cost of Ratio (wd Ratio (ws'atio (wd/w Debt (rd) Beta Equity 0% 1.0 0.00 10% 0.9 0.11 20% 0.8 0.25 30% 0.7 0.43 0.6 0.67 50% 0.5 1.00 60% 0.4 1.50 70% 0.3 2.33 40% WACC at optimum debt ratio Optimum debt ratio =