Question: Optimal Capital Structure a . Based upon the cost of capital approach, what is the optimal debt ratio for Netflix ? b . Bringing in

Optimal Capital Structure

a. Based upon the cost of capital approach, what is the optimal debt ratio for Netflix ?

b. Bringing in reasonable constraints into the decision process, what would your recommended debt ratio be for this firm?

c. Does your firm have too much or too little debt when compared to the sector, market?

i. relative to the sector?

ii. relative to the market?

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