Question: Aa Aa E. 6. Determining the optimal capital structure Understanding the optimal capital structure Review this situation: Transworld Consortium Corp. is trying to identify its



Aa Aa E. 6. 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% 70% 1.55 0.34 22.35 40% 60% 1.67 0.45 24.56 50% 72 0.51 25.78 50% 40% 60% 1.78 0.57 27.75 30% 84 0.62 26.42 70% Which capital structure shown in the preceding table is Transworld Consortium Corp.'s optimal capital structure? O Debt ratio 60%; equity ratio 40% O Debt ratio 50%; equity ratio 50% o Debt ratio 30%; equity ratio 70% O Debt ratio 70%; equity ratio 30% O Debt ratio 40%; equity ratio 60%
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