Question: Eden has estimated the required return for JEBO Ltd at each level of debt. If the value of shares can be determined as the expected

Eden has estimated the required return for JEBO Ltd at each level of debt. If the value of shares can be determined as the expected EPS/required return, then estimate the optimal debt ratio, and justify your answer. Debt ratio NPAT Shares outstanding Required return 0% $56,800 20,000 10% 15 $51,120 16,000 11% 30 $46,476 14,000 12% 45 $40,896 12,000 15% 60 $34,080 10,000 19%

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