Question: Of the various capital structures below, which do you think is the most optimal? Why? a. Debt = 40%; Equity = 60%; EPS= $2.95; Stock
Of the various capital structures below, which do you think is the most optimal? Why?
a. Debt = 40%; Equity = 60%; EPS= $2.95; Stock price = $26.50.
b. Debt = 50%; Equity = 50%; EPS= $3.05; Stock price = $28.90
c.Debt = 60%; Equity = 40%; EPS= $3.18; Stock price = $31.20
d. Debt = 80%; Equity = 20%; EPS= $3.42; Stock price = $30.40
e. Debt = 70%; Equity = 30%; EPS= $3.31; Stock price = $30.00
d.
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