John has estimated the required return for Apple 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	Net profit after tax	Number of shares outstanding	Required return
0%	$100,000	200,000	7.5%
15	$90,000	170,000	7.8%
30	$80,000	140,000	8.1%
45	$70,000	110,000	11.0%
60	$60,000	80,000	16.0%

Select one:

a. 60%, because EPS is maximised.

b. 15%, because the share price is maximised.

c. 45%, because EPS is maximised.

d. 0%, because the share price is maximised.

e. 30%, because the share price is maximised.