Question: Based on the information below, what is Ezzel Enterprises' optimal capital structure? A. Debt = 80%; Equity = 20%; EPS = $3.42; Stock price =

Based on the information below, what is Ezzel Enterprises' optimal capital structure?

A. Debt = 80%; Equity = 20%; EPS = $3.42; Stock price = $30.40.

B. Debt = 60%; Equity = 40%; EPS = $3.18; Stock price = $31.20.

C. Debt = 40%; Equity = 60%; EPS = $2.95; Stock price = $26.50.

D. Debt = 70%; Equity = 30%; EPS = $3.31; Stock price = $30.00.

E. Debt = 50%; Equity = 50%; EPS = $3.05; Stock price = $28.90.

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