please do in excel format and display formulas

P13-26 Integrative: Optimal capital structure The board of directors of Morales Publishin Inc., has commissioned a capital structure study. The company has total assets of $40,000,000. It has earnings before interest and taxes of $8,000,000 and is taxed a rate of 40% a. Create a spreadsheet like the one in Table 13.10 showing values of debt and eo uity as well as the total number of shares, assuming a book value of $25 per share. % Debt Total assets S Debt $ Equity Number of shares @$25 0% $40,000,000 10 40,000,000 20 40,000,000 30 40,000,000 40 50 60 40,000,000 40,000,000 40,000,000 b. Given the before-tax cost of debt at various levels of indebtedness, calculate the yearly interest expenses. Before-tax cost of debt, rd 0.0% S Interest expense %Debt STotal debt 0% 10 20 30 40 50 60 7.5 8.0 9.0 11.0 12.5 15.5 Using EBIT of $8,000,000, a 40% tax rate, and the information developed in parts a and b, calculate the most likely earnings per share for the firm at various levels of indebtedness. Mark the level of indebtedness that maximizes EPS. c. Interest Number of % Debt EBIT expense EBT Taxes Net income shares EPS 0% $8,000,000 $ --$s 10 8,000,000 20 30 40 50 60 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 d. Using the EPS developed in part c, the estimates of required return, r, and Equa- tion 13.12, estimate the value per share at various levels of indebtedness. Mark the level of indebtedness in the following table that results in the maximum price per share, Po- d. Using the EPS developed in part c, the estimates of required return, r, and Equa- n 13.12, estimate the value per share at various levels of indebtedness. Mark the level of indebtedness in the following table that results in the maximum price per share, Po Debt EPS Po 0% $ 10.0% $ 10 20 30 40 50 60 10.3 10.9 11.4 12.6 14.8 17.5 e. Prepare a recommendation to the board of directors of Morales Publishing that specifies the degree of indebtedness that will accomplish the firm's goal of opti- mizing shareholder wealth. Use your findings in parts a through d to justify your recommendation