Question: Briefly discuss the term optimal capital structure. Does your company have the optimal Debt/equity ratio? Justify your answer. You can use the average of your

Briefly discuss the term "optimal capital structure". Does your company have the optimal Debt/equity ratio? Justify your answer.

You can use the average of your firms industry average ratios as "optimal capital structure".

You can also calculate business risk of your allocate company (standard deviation of EBIT/Total assets for 5 year period) as well as other firms in your firms industry.

long term debt/equity

2012 2013 2014 2015 2016 Average 2012-2016

my firm's 0.669755253 0.540001421 0.41900889 0.816918297 0.614318007 0.610778899

industry average 0.530270951 0.391278913 0.394215845 0.353683456 0.370710793 0.367414226

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