Integrative: Optimal capital structure The board of directors of Morales Publishing, Inc., has commissioned a capital structure study. The company has total assets of S40,000,000. It has earnings before interest and taxes of $8,000,000 and is taxed at a rate of 40%. a. Create a spreadsheet like the one in Table 13.10 showing values of debt and eq- LG3 LG4 P13-26 LG5 LG 6 uity as well as the total number of shares, assuming a book value of S25 per share. %Debt Total assets SDebt SEquity Number of shares @ S25 0% $40,000,000 s 10 40,000,000 20 40,00,000 30 40,000,000_ 40 40,000,000 50 40,000,000 60 40,000,000 b. Given the before-tax cost of debt at various levels of indebtedness, calculate the yearly interest expenses