Grape Plc has a value of 200m when it is unlevered. What level of debt would maximise the firm value if: The rate of corporation tax it faces is 25%. The required rate of return for shareholders for the firm in its current state is 10%. The required rate of return for bondholders for this firm will be 5%. The cost of financial distress (CFD) is a function of the amount of the firm's capital structure funded by debt: CFD = 0.000000002B, that is, as the firm borrows more, its costs of financial distress increases with the amount of debt