DAnconia Copper is considering issuing one year debt, and has come up with the following estimates of the value of the interest tax shield and the probability of distress for different levels of debt: Debt Levels K0 K25 K50 K60 K70 K80 K90 PV of Interest Tax Shield (K Million) K0.0 K0.4 K1.0 K1.2 K1.5 K1.7 K2.0 Probability of Financial Distress 0% 0% 1% 2% 7% 17% 32% If in the event of distress, what will be the optimal level of debt for D'Anconia Copper if: a. The present value of distress costs is equal to K10 million ( 7 Marks) b. The present value of distress costs is equal to K15 million ( 3 Marks)