FInancial Management Theory and Practice, 14th ed, Brigham and Erhardt. Chapter 15. Problem 12 (spreadsheet problem). Please include the excel formulas to the spreadsheet. The answers in the solution guide seem to be incorrect, I would like to compare my values.

12/8/12 Chapter: 15 Problem: 12 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 estimate of Reacher's unlevered beta, and the tax rate are also shown below. Based on this information, what is the firm's optimal capital structure and what is the weighted average cost of capital at the optimal structure? Input Data Risk-free rate Market risk premium Unlevered beta Tax rate Financed Before-tax with DebtCost Debt 4.5% 0.8 40.0% 6.0% 6.1% 10% 8.0% 10.0% 12.5% 15.5% 18.0% 50% Fill in formulas in the yellow cells to find the optimum capital structure. lls to find the optimum capital structure A-TCost o T Cost of LeveredCost of DebtValue Equity/Value Debt/Equity Ratio (wRatio (wRatio (wdlwgDebt (rd Beta EquityWACC 0% 10% 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.00 0.11 0.25 0.43 0.67 1.00 1.50 2.33 50% 60% 70% WACC at optimum debt ratio = Optimum debt ratio