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please solve this problem without using Excel and show all steps 8. For the XYZ Company, the corporate tax rate is 21%. The probability of

please solve this problem without using Excel and show all steps image text in transcribed
8. For the XYZ Company, the corporate tax rate is 21%. The probability of financial distress for various levels of permanent debt are Debt in millions 80 100 120 140 160 Probability of financial distress 2% 4% 10% 20% 60% The cost of financial distress is 25 million Determine the optimal level of permanent debt

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