Question: Debt Ratio 30% Equity Ratio 70% EPS 1.55 DPS 0.34 Stock Price 22.35 40% 60% 1.67 0.45 24.56 50% 50% 1.72 0.51 25.78 27.75 40%

 Debt Ratio 30% Equity Ratio 70% EPS 1.55 DPS 0.34 Stock

Debt Ratio 30% Equity Ratio 70% EPS 1.55 DPS 0.34 Stock Price 22.35 40% 60% 1.67 0.45 24.56 50% 50% 1.72 0.51 25.78 27.75 40% 60% 70% 1.78 1.84 0.57 0.62 30% 26.42 Which capital structure shown in the preceding table is Transworld Consortium Corp.'s optimal capital structure? Debt ratio = 40%; equity ratio = 60% Debt ratio = 50%; equity ratio = 50% Debt ratio = 50%; equity ratio = 40% Debt ratio = 30%; equity ratio = 70% Debt ratio = 70%; equity ratio = 30%

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