please complete all parte 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 200, so that the propriate discount rate for financial distress costs is the risk free rate of 5%. Which level of debt above is optimal in the event of distress, the firm wil have distress costs equal to a. $1 milion? b. $5 milion? c. $30 milion $inlion i des couts we uw to $1 milion, the optimal level of detti 3 milion (Round to the rearest Integer) i Data Table X (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 40 50 60 80 90 PV (interest tax shield, $ million) 0.00 0.76 0.95 1.14 1.33 1.52 1.71 Probability of Financial Distress 0% 0% 1% 2% 7% 16% 31% 70 Print Done