Back to Assignment Attempts Keep the Highest 6 6. Determining the optimal capital structure Aa Aa Understanding the optimal capital structure Review ttion: Universal Exports Inc. is trying to identify its optimal capital structure, Universal Exparts Inc. has gathered the following financial information to help with the analysis Debt Ratio Equity Ratio rs WACC 7.00% 10.50% 8.61% 7.20% 10.80% 8.21% 7.70% 11.406 8.016 8.9096 12.2096 8.0896 10.30% 13.50% 8.38% rd 30% 40% 50% 60% 70% 70% 60% 50% 40% 30% Which capital structure shown in the preceding table is Universal Exports Inc.'s optimal capital structura? Debt ratio Debt ratio Debt ratio o Debt ratio Debt ratio 70%; equity ratio 30% 50%; equity ratio . 5096 40%; equity ratio 60% 30%; equity ratio. 7096 60%; equity ratio. 4096 Consider this case: Globex Corp. currently has a capital structure consisting of 40% debt and 60% equity. However, Globex Corp. 's CFO has suggested that the firm increase its debt ratio to 50%. The current risk-free rate is 3.5%, the market risk premium is 7%, and Globex Corp.'s beta is 1.25. If the firm's tax rate is 35%, what will bethe beta of an all-equity firm if its operations were exactly the same