8. Determining the optimal capital structure Understanding the optimal capital structure Review this situation: Transworld Consortium Corp. is trying to identify its optimal capital structure. Transworld Consortium corp. has gathered the following financial information to help with the analysis Debt Ratio Equity Ratio EPS DPS Stock Price 30% 40% 50% 60% 70% 70% 1.25 0.55 36.25 6096 1.40 0.60 37.75 50% 1.6 0.65 39.50 40% 1.850.75 38.75 30% 1.75 0.70 3825 which capital structure shown in the preceding table is Transworld Consortium corp s optimai capital structure? O Debt rre . 40%; equity ratio . 60% O Debt rbGe 30%;"quity ratio" 70% 0 Debt ratio 70%; equity ratio-30% 0 Debt ratio " 60% equity ratio-40% 0 Debt ratio 50%; equity rati tt 50% Consider this case: Globex Corp. currently has . capital structure consisting of 40% debt and 60% equity. Hoeve, aaber onvo has suggested that the firm create its debt ratio to 50% the rent sklee rate the mariet risk premium is 7%, and Globex Corp's beta is i 10 If the firm's tex" rate is 35%, what we\ be the beta of an all-equity frm its operations werweractly the same