please answer parts a-c

Your firm is considering issuing one-year debt, and has come up with the following estimates of the value of the interest tax shield and the probability of distress for different levels of debt Suppose the firm has a beta of zero, so that the appropriate discount rate for financial distress costs is the risk-free rate of 5%. Which level of debt above is optimal it, in the event of distress, the firm will have distress costs equal to a. $2 million? b. $7 million? c. $29 million? a. $2 million? if distress costs are equal to $2 million, the optimal level of debt is $ million (Round to the nearest integer) Suppose the firm has a beta of zero, so that the appropriate discount rate for financial distress costs is the risk-free rate of i Data Table - X qual (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Debt Level (in $ million) 0 50 60 70 80 PV (interest tax shield, $ million) 0.00 0.76 0.95 1.14 1.33 1.71 Probability of Financial Distress 0% 0% 2% 16% 31% 40 90 1.52 1% 7% Print Done