Following Are the Results of the Capital Structure Analysis SoCal

question 12

Multiple Choice

Following are the results of the capital structure analysis SoCal Irrigation just completed:    
$$\begin{array} { c c c } \begin{array} { c } \text { Proportion } \\\text { of Debt }\end{array} & \begin{array} { c } \text { Stock Price } \\\text { (per share) }\end{array} & \begin{array} { c } \text { Earnings per } \\\text { Share (EPS) }\end{array} \\\hline 20 \% & \$ 44.50 & \$ 1.20 \\40 & 45.15 & 1.26 \\60 & 45.20 & 1.22 \\80 & 44.95 & 1.18\end{array}$$
According to this information, what is SoCal's optimal capital structure?

• A)20%
• B)40%
• C)60%
• D)80%
• E)To determine the optimal capital structure, the market value of the stock must be known.

---

Definitions:

Xbox Gamers

Individuals or groups who engage in playing video games on any of the Xbox console platforms.

Characteristics in Chat Rooms

Characteristics in chat rooms include anonymity, real-time text-based communication, and the ability to interact with multiple users, fostering diverse discussions and communities online.

Web Crawlers

Automated programs that browse the internet systematically to index the content of websites for search engines.

Sampling Frame

The list or database from which a sample is drawn in research, representing the larger population of interest.