please show work and be correct last guy got wrong i will upvote

K Pierce Products Inc. is considering changing its capital structure. . Parce currently has no debt and no preferred stock, but it would like to add someone to the average of sew interest rates and the ta shield. Its westment banker has indicated that the pre-tax cost of det under various possible capital structures would be as follows Market Debt Market Equity Market Debt- Before to-Value to-Value to-Equity Tax Cost Ratio Ratio (wa) (ws) (0/5) (ra) Ratio of Debt 0.0 1.0 0.00 60% 0.2 0.8 0.25 7.0 0.4 0.6 0.67 8.0 0.6 0.4 3.50 9.0 0.8 0.2 4.00 10.0 - Use the exact value of 2/3 in your calculations F. Pierce uses the CAPM to estimate it cost of common equity, and at the time of the analysis the risk-free rate is 7%, the market risk premium is 8%, and the company's tax rate is 30 F. Pierce estimates that its beta now (which is unlevered" because it currently has no debt) is 135. Based on this information, what is the firm's optimal capital structure, and what would the weighted average cost of capital at the optimal capital structure? Do not round intermediate calculations. Round your answers to two decimal places Debti 60 Equity: 40 % WACC 8.89