Question: Based on the information below, what is the optimal capital structure for this company? a. Debt =60 Equity =40 EPS ( =$ 3.18 ; )

Based on the information below, what is the optimal capital structure

Based on the information below, what is the optimal capital structure for this company? a. Debt \=60 Equity \=40 EPS \$ =\\$ 3.18 ; \$ Stock price \$ =\\$ 31.20 \$ b. Debt \=40 Equity \=60 EPS \$ =\\$ 2.95 ; \$ Stock price \$ =\\$ 26.50 \$. c. Debt \=70 Equity \=30 EPS \$ =\\$ 3.31 ; \$ Stock price \$ =\\$ 30.00 \$ d. Debt \=50 Equity \=50 EPS \$ =\\$ 3.05 ; \$ Stock price \$ =\\$ 27.90 \$ e. Debt \=80 Equity \=20 EPS \$ =\\$ 4.42 ; \$ Stock price \$ =\\$ 30.40 \$ Based on the information below, what is the optimal capital structure for this company? a. Debt \=60 Equity \=40 EPS \$ =\\$ 3.18 ; \$ Stock price \$ =\\$ 31.20 \$ b. Debt \=40 Equity \=60 EPS \$ =\\$ 2.95 ; \$ Stock price \$ =\\$ 26.50 \$. c. Debt \=70 Equity \=30 EPS \$ =\\$ 3.31 ; \$ Stock price \$ =\\$ 30.00 \$ d. Debt \=50 Equity \=50 EPS \$ =\\$ 3.05 ; \$ Stock price \$ =\\$ 27.90 \$ e. Debt \=80 Equity \=20 EPS \$ =\\$ 4.42 ; \$ Stock price \$ =\\$ 30.40 \$

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