Ch 13: Assignment-Capital Structure and Leverage Back to Assignment Attempts Keep the Highest/3 2. Problem 13.02 (Optimal Capital Structure) eBook Terrell Trucking Company is in the process of setting its target capital structure. The CFO believes that the optimal debt-to-capital ratio is somewhere between 20% and 50 her staff has compiled the following projections for EPS and the stock price at various debt levels: Debt/Capital Ratio Projected EPS Projected Stock Price 20% $3.15 $32.75 30 3.50 36.50 40 3.70 36.00 50 3.60 33.00 Assuming that the firm uses only debt and common equity, what is Terrell's optimal capital structure? Choose from the options provided above. Round your answers to two de places. % debt % equity At what debt-to-capital ratio is the company's WACC minimized? Choose from the options provided above. Round your answer to two decimal places. Grade it Now Save & Continue Continue without saving