L Corporation has total assets of P100 million. Earnings before interest and taxes were P20 million and the tax rate was 35%. Given the following leverage ratios and corresponding interest rates, calculate Litton's rate of return on equity for each amount of debt. Leverage (Debt / Total Assets) Interest Rate on Debt 0 % 10 30 50 60 16 % 16 18 21 5 What is the optimal capital structure? If you were the finance manager, which capital structure would you choose? Explain