Is this correct?

Problem 3: Reacher Solutions is considering 3 different capital structures. To help them make the optimal choice, they provided you with the following data: the risk-free rate (rf) is currently 4.2%, the market risk-premium (rpm, that is rm -r) is 7.0%, its unlevered beta (bu) is 1.3, and its tax rate is 25%. Input Data Risk-free rate Market risk premium Unlevered beta Tax rate 4.2% 7.0% 1.3 25.0% Percent Financed with Before-tax Cost Debt Debt (w.) (rd) 0% 6.5% 5% 6.7% 10% 7.6% 15% 10.0% 20% 12.0% 25% 14.4% 30% 20.0% a) Help Reacher fill out the following table. (8 pts) Levered WACC Debt/Value Ratio (wa) 0% 5% 10% 25% 20% 25% 30% EquityValue Ratio (w.) 100% 95% 90% 75% 80% 75% 70% DE ratio (w/w) 0.00 0.05 0.11 0.33 0.25 0.33 0.43 A-T Cost of Debt (ra) 4.88% 5.00% 5.70% 7.50% 9.00% 10.80% 15.00% Beta 1.30 1.35 1.41 1.63 1.54 1.63 1.72 Cost of Equity 13.30% 13.66% 14.06% 15.58% 15.01% 15.58% 16.23% 13.30% 13.24% 13.76% 20.01% 17.01% 20.01% 24.21% b) Based on your computations and answers in the table, what is the optimal capital structure? What is the optimum WACC? (2 pts) WACC at optimum debt ratio Optimum debt ratio = 13.24% 5%