Question: Can you please answer in excel and give step by step explanation with formulae please. Exercise 12. 7 The cost of equity capital is expected

Can you please answer in excel and give step by step explanation with formulae please.

Exercise 12. 7 The cost of equity capital is expected to rise as a result of excessive debt. If the cost of equity as a function of debt is given in the table below, determine the optimal capital structure. Assume that the cost of debt is 10% and the tax rate is 35%. Percentage Debt Cost of Equity Capital 0 10.0 10 10.1 20 10.2 30 10.3 40 10.5 50 11.0 60 11.5 70 13.5 80 16.0

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