Based on the Information Below,what Is the Firm's Optimal Capital

question 79

Multiple Choice

Based on the information below,what is the firm's optimal capital structure?

• 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.

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Definitions:

Processes

A series of actions or steps taken in order to achieve a particular end.

Interpersonal Problems

Issues or conflicts that arise in interactions or relationships between individuals.

Public Participation

Public participation refers to the involvement of citizens in decision-making processes, typically in matters affecting community or governmental policies.

Minimum Wage

The lowest legal remuneration that employers can pay their workers, set by government legislation.