Please help me to answer the question, deadline is in 2 hours :(

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The question is:

Create Excel graph showing the relationship between the leverage and the cost of capital of an airline company under the assumptions provided below. (Just send the photo and the calculations is okay ! No need to put an excel file)

For drawing the graph, on the x-axis, plot debt to equity ratio for the range between 0 and 1.

On the y-axis, plot the cost of levered equity and the (after-tax) WACC for corresponding D/E ratio.

Assumptions:

1) Asset beta (beta of business without leverage) of this airline company is 0.8

2) Current risk-free interest rate is 1% and market risk premium is 5.5%

3) CAPM holds.

4) The company's marginal tax rate is 30%

5) The company is assumed to issue perpetual bond to obtain debt capital, and once debt is issued, the balance of debt will be unchanged forever.

6) The company's cost of debt for issuing perpetual debt is as follows depending on its leverage.

D/E Ratio between 0 and 0.1: 1% (risk-free rate)

Between D/E 0.1 and 1: (1+D/E-0.1)% (for example, when D/E=1, rd = 1.9%)

Create an Excel graph showing the relationship between the leverage and the cost of capital of an airline company under the assumptions provided below. For drawing the graph, on the x-axis, plot debt to equity {DIE} ratio for the range between 0 and 1.0. On the y-axis, plot the cost of (levered) equity and the (after-tax} WACC for corresponding DIE ratio. Assumptions (1) The asset beta (beta of business without leverage) of this airline company is 0.8. (2) Current risk-free interest rate is 1% and the market risk premium (Elxulrf) is 5.5%. (3) CAPM holds. (4) The company's marginal tax rate is 30%. (5) The company is assumed to issue perpetual bond to obtain debt capital, and once debt is issued, the balance of debt will be unchanged forever. (6) The company's cost of debt for issuing perpetual debt is as follows depending on its leverage. DIE ratio between 0 and 0.1: 1% {risk-free ratel). Between DIE 0.1 and 1: (1+DlE0.1)% {for example, when DlE=1, ro=1.9%]