Given the following, determine the firm's optimal capital structure Debt/Assets After-Tax Cost of Debt Cost of Equity 0% 10% 10 10 12 13 14 17 6% 10 10 12 Round your answers for capital structure to the nearest whole number and for the cost of capital to one decimal place. The optimal capital structure: | % debt and % equity with a cost of capital of 1 b. If the firm were using o percent debt and 100 percent equity, what would that tell you about the firm's use of financial leverage? Round your answer for the cost of capital to one decimal place. If the firm uses 0% debt financing, it would be using select The firm could lower the cost of capital by substituting -Select- financial leverage. At that combination the cost of capital is c. What two reasons explain why debt is cheaper than equity? .In addition, equity investors bear-Select risk. d. st one folda w er ud ne 20 v less thdan their reguired freturm l tod percent? return of 8.i percent on an investment would this mean thet Debt is cheaper than equity because interest expense -Select stockholders would receive less than their required return of 10.0 percent? If the firm earns 8.1% on an investment, the stockholders will earn Ps than their required 10.0%. What return would stockholders receive? Round your answer to one morace