Based on the Information Below for Benson Corporation, What Is

question 74

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:

Bride's Family

The family of the female partner in a marriage or wedding ceremony.

Dowry

The money, goods, or property a woman brings to a marriage.

Marriage

A legally or culturally sanctioned union between individuals that establishes rights and obligations between them, as well as between them and their children, and between them and their in-laws.

Lesbian Dating Violence

Acts of violence or abuse within a dating relationship among lesbian couples.