Question 3 14 pts Suppose you are attempting to identify the optimal capital structure of a firm that has EBIT of $4,000,000 which it is expects to remain constant into perpetuity. Other pertinent details are as follows: Current Debt-to-Equity Ratio is 1.50 Current Beta is 1.70 Current Tax Rate is 35% Risk-free rate is 4% Return on the market is 11% Before proceeding with your analysis, you were told that a colleague of yours had already estimated the bond ratings and spreads along with some of the levered costs of equity which were then used to compute the respective weighted average costs of capital given varying proportions of debt. See table below with your colleagues partially-completed analysis: Given the above information provided and assuming the firm can only implement one of the debt-to- equity ratios provided in the above table, determine the following: Question 3 14 pts Suppose you are attempting to identify the optimal capital structure of a firm that has EBIT of $4,000,000 which it is expects to remain constant into perpetuity. Other pertinent details are as follows: Current Debt-to-Equity Ratio is 1.50 Current Beta is 1.70 Current Tax Rate is 35% Risk-free rate is 4% Return on the market is 11% Before proceeding with your analysis, you were told that a colleague of yours had already estimated the bond ratings and spreads along with some of the levered costs of equity which were then used to compute the respective weighted average costs of capital given varying proportions of debt. See table below with your colleagues partially-completed analysis: Given the above information provided and assuming the firm can only implement one of the debt-to- equity ratios provided in the above table, determine the following