Aa Aa E. ageBrain Login or Register timal capital structure 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 rd WACC 30% 70% 6.02% 9.40% 9.71% 40% 60% 6.75% 9.750% 9.55% 50% 50% 7.15% 10.60% 10.02% 60% 40% 7.55% 11.30% 10.78% 70% 30% 8.24% 12.80% 11.45% Which capital structure shown in the preceding table is Universal Exports Inc.'s optimal capital structure? O Debt ratio 70%; equity ratio 30% O Debt ratio 50%; equity ratio 50% O Debt ratio 60%; equity ratio 40%. O Debt ratio 30%; equity ratio 70%. O Debt ratio 40%; equity ratio 60% Consider this case: Globex Corp. is an all-equity firm, and it has a beta of 1. It is considering changing its capital structure to 70% equity and 30% debt. The firm's cost of debt will be 8%, and it will face a tax rate of 45%. What will Globex Corp.'s beta be if it decides to make this change in its capital structure? 1.18 1.24 1.12 Now consider the case of another company: 1.67