You work for a firm that is very good at sheltering incomefrom corporate taxes.As a result, your firm as a fairly low effectivecorporate tax rate of10percent.The debt holders of your firm face a marginal tax rate on interest income (from debt payments) of20percent.Your shareholders face a tax rate on capital gains and distributions to equity of 10percent.In the event of a bankruptcy, your bankruptcy costs will be about 5 percent of the value of the assets that remain.Should you have a lot, a little, or no debt in your capital structure?Explain why.