Question $13(3$ points$)$

If Saluki Entertainment Company is following the appropriate primary goal of firm managers, which of the following is the optimal $($best$)$ capital structure for the firm?

A$)$ Debt ratio $=25\%,$ Dividend $=$$$2\mathrm{.}50,$ EPS $=$$$3\mathrm{.}18,$ Stock price $=$$$29\mathrm{.}90,$ Cost of Debt $=3\mathrm{.}2\%$

B$)$ Debt ratio $=15\%,$ Dividend $=$$$2\mathrm{.}00,$ EPS $=$$$2\mathrm{.}95,$ Stock price $=$$$30\mathrm{.}90,$ Cost of Debt $=2\mathrm{.}9\%$

C$)$ Debt ratio $=55\%,$ Dividend $=$$$2\mathrm{.}40,$ EPS $=$$$4\mathrm{.}11,$ Stock price $=$$$30\mathrm{.}44,$ Cost of Debt $=4\mathrm{.}1\%$

D$)$ Debt ratio $=35\%,$ Dividend $=$$$2\mathrm{.}70,$ EPS $=$ $$3\mathrm{.}88,$ Stock price $=$ $$32\mathrm{.}15,$ Cost of Debt $=3\mathrm{.}4\%$

E$)$ Debt ratio $=45\%,$ Dividend $=$$$2\mathrm{.}40,$ EPS $=$$$4\mathrm{.}09,$ Stock price $=$$$31\mathrm{.}77,$ Cost of Debt $=3\mathrm{.}7\%$