Based on the Information Below for Benson Corporation, What Is

question 67

Multiple Choice

Based on the information below for Benson Corporation, what is the optimal capital structure?

• A) Debt = 50%; Equity = 50%; EPS = $3.05; Stock price = $28.90.
• B) Debt = 60%; Equity = 40%; EPS = $3.18; Stock price = $31.20.
• C) Debt = 80%; Equity = 20%; EPS = $3.42; Stock price = $30.40.
• D) Debt = 70%; Equity = 30%; EPS = $3.31; Stock price = $30.00.
• E) Debt = 40%; Equity = 60%; EPS = $2.95; Stock price = $26.50.

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Definitions:

Polytheism

The belief in multiple gods and/or goddesses.

State Societies

Complex social structures characterized by centralized political organization, social stratification, and governance over a specific territory.

Social Stratification

The emergence of social classes, a series of ranked social categories according to characteristics such as wealth, occupation, or kin group.

Bugis

An ethnic group from the island of Sulawesi in Indonesia, known for their maritime culture and significant historical role in trade within Southeast Asia.