Your firm is considering issuing one-year debt, and has come up with the following estimates of the value of the interest tax shield and the probability of distress for different levels of debt: . Suppose the firm has a beta of zero, so that the appropriate discount rate for financial distress costs is the risk-free rate of 5%. Which level of debt above is optimal if, in the event of distress, the firm will have distress costs equal to a. $3 million? b. $5 million? c. $27 million? a. \$3 million? If distress costs are equal to $3 million, the optimal level of debt is $ million. (Round to the nearest integer.) Data table (Click on the following icon 1 in order to copv its contents into a spreadsheet.)