Question: d. Debt = 40%; Equity = 60%; EPS = $2.93; Stock price e. Debt = 60%; Equity = 40%; EPS = $3.18; Stock price =
d. Debt = 40%; Equity = 60%; EPS = $2.93; Stock price e. Debt = 60%; Equity = 40%; EPS = $3.18; Stock price = $31.2 Destion 11 The firm's target capital structure should do which of the following? at yet swered nts out of Select one: a. Minimize the cost of equity (rs). b. Minimize the weighted average cost of capital (WACC). eg tion O c. Maximize the earnings per share (EPS). d. Minimize the cost of debt (ra). Oe. Obtain the highest possible bond rating. 12
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