6. Determining the optimal capital structure Aa Aa Understanding the optimal capital structure Review this situation: Universal Exports Inc. is trying to identify its optimal capital structure. Universal Exports Inc. has gathered the following financial information to help with the analysis. Debt Ratio Equity Ratio EPS DPS Stock Price 7090 60% 1.40 0.60 37.75 50% 1.60 0.65 39.50 40% 1.85 0.75 38.75 30% 1.75 0.70 38.25 1.25 0.55 36.25 30% 40% 50% 60% 70% Which capital structure shown in the preceding table is Universal Exports Inc.'s optimal capital structure? O Debt ratio-50%; equity ratio 50% Debt ratio 70%; equity ratio-30% 0 Debt ratio 40%; equity ratio-60% O Debt ratio # 6096; equity ratio 40% Debt ratio 30%; equity ratio-70%