I am not sure how to go about doing the attached file and need help please.

Solution Chapter: Problem: 15 13 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 Percent Financed with Before-tax Debt (wd) Cost Debt (rd) 0% 10% 20% 30% 40% 50% 60% 70% 6.0% 6.1% 7.0% 8.0% 10.0% 12.5% 15.5% 18.0% 4.5% 5.5% 0.8 40.0% Fill in formulas in the yellow cells to find the optimum capital structure. Debt/Value Ratio (wd) 0% 10% 20% 30% 40% 50% 60% 70% Equity/Value Debt/Equity Ratio (ws) Ratio (wd/ws) 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 A-T Cost of Debt (rd) 0.00 0.11 0.25 0.43 0.67 1.00 1.50 2.33 WACC at optimum debt ratio = Optimum debt ratio = 1 of 2 Levered Beta Cost of Equity WACC 7/16/2015 rate it would pay for emium, an estimate of on, what is the firm's ructure? 2 of 2