9. Determining the optimal capital structure Aa Aa Understanding the optimal capital structure Review this situation: Transworld Consortium Corp. is trying to identify its aptimal capital structure. Transworld Consortium Corp. has gathered the following financial information to help with the analysis Debt Ratio Equity Ratio rd 30% 40% 50% 60% 70% 70% 60% 50% 40% 30% 6.02% 6.75% 7.15% 7.55% 8.24% Ts 9.40% 9.750% 10.60% 11.30% 12.80% WACC 9.71% 9.55% 10.02% 10.78% 11.45% Which capital structure shown in the preceding table is Transworld Consortium Corp.'s aptimal capital structure? Debt ratio-30%; equity ratio-70% Debt ratio-70%; equity ratio-30% Debt ratio-40%; equity ratio-60% Debt ratio-50%; equity ratio-50% Debt ratio-60%; equity ratio-40% Consider this case Globo-Chem Co. has a capital structure that consists of 35% debt and 65% equity. The firm's current beta is 1.15, but management wants to understand Globo-Chem Co.'s market risk without the effect of leverage If Globo-Chem Co. has a 35% tax rate, what is its unlevered beta? O 0.89 O 0.85 O 0.77 O 0.72 Now consider the case of anather company