Question: LDL Coporation is currently evaluating on which capital structure would be best for the company. Which of the following capital structure should LDL Corporation adopt?
LDL Coporation is currently evaluating on which capital structure would be best for the company. Which of the following capital structure should LDL Corporation adopt? Justify your answer.

Capital Structure Cost of Debt Debt Ratio Number of shares outstanding Required Earnings Return per Share 0% 15 301 45 60 0% 8 9 12 15 Noo 200,000 170,000 140,000 110,000 80,000 12% $ 5.00 13 $ 5.46 14 $ 5.99 16 $ 6.15 20 $ 5.75
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