Question: Please answer each part for a good review! Thanks! Do No Harm: 18 Attempts: 9. Determining the optimal capital structure Understanding the optimal capital structure

 Please answer each part for a good review! Thanks! Do NoHarm: 18 Attempts: 9. Determining the optimal capital structure Understanding the optimal

Please answer each part for a good review! Thanks!

Do No Harm: 18 Attempts: 9. Determining the optimal capital structure Understanding the optimal capital structure Review this situation: Transworld Consortium Corp. is trying to identify its optimal capital structure. Transworld Consortium Corp. has gathered the following financial information to help with the analysis Debt Ratio Equity Ratio EPS DPs Stock Price 30 70% 1.55 0.34 22.35 40 60% 1.67 0.45 24.56 50 50 1.72 0.51 25.78 40% 1.78 0.57 27.75 60% 70% 30 1.84 0.62 26.42 Which capital structure shown in the preceding table is Transworld Consortium Corp.'s optimal capital structure? O Debt ratio 30 equity ratio 70% O Debt ratio 60% equity ratio 40% O Debt ratio 40 equity ratio 60% O Debt ratio 50%; equity ratio 50 O Debt ratio 70%; equity ratio 30 Consider this case Globex Corp. has a capital structure that consists of 40 debt and 60% equity. The firm's current beta is 1.15, but management wants to understand Globex Corp.'s market risk without the effect of leverage If Globex Corp. has a 40% tax rate, what is its unlevered beta? O 0.78 O 0.74 O 0.70 O 0.82

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