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please show excel formulas Reacher Technology has consulted with investment bankers and determined the interest rate it would pay fo different capital structures, as shown

please show excel formulas

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Reacher Technology has consulted with investment bankers and determined the interest rate it would pay fo different capital structures, as shown below. Data for the risk-free rate, the market risk premium, an estimate Reacher's unlevered beta, and the tax rate are also shown below. Based on this information, what is the firm 2 optimal capital structure and what is the weighted average cost of capital at the optimal structure? B 5 5 Input Data Risk-free rate Market risk premium Unlevered beta Tax rate 4.5% 5.5% 0.8 40.0% 3 1 2 3 Percent Financed with Debt (wa) 0% 10% 20% 30% 40% 50% 60% Before-tax Cost Debt (rd) 6.0% 6.1% 7.0% 8.0% 10.0% 12.5% 15.5% 18.0% 5 5 7 70% Fill in formulas in the yellow cells to find the optimum capital structure. Levered Beta Cost of Equity WACC 2 3 1 5 5 7 3 Debt/Value Ratio (wa) 0% 10% 20% 30% 40% 50% 60% 70% Equity/Value Debt/Equity A-T Cost of Ratio (ws) Ratio (Wa/ws) Debt (ra) 1.0 0.00 0.9 0.11 0.8 0.25 0.7 0.43 0.6 0.67 0.5 1.00 0.4 1.50 0.3 2.33

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