From the Information Below, Select the Optimal Capital Structure for Mountain

question 11

Multiple Choice

From the information below, select the optimal capital structure for Mountain High Corp.

• 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

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Definitions:

Vertical Hierarchy

An organizational structure where power and authority flow from the top down through various levels of management.

Horizontal Division

The organization of work or responsibilities among individuals or groups at the same level within an organization.

Information Architecture

The design and organization of content, pages, and data on websites or within digital products to help users find information and complete tasks efficiently.

Direct Link

A direct connection or URL that takes the user straight to a specific webpage or resource without any redirections.