Based on the Information Below,what Is Ezzel Enterprises' Optimal Capital

question 71

Multiple Choice

Based on the information below,what is Ezzel Enterprises' optimal capital structure?

• A)Debt = 40%; Equity = 60%; EPS = $2.95; Common share price = $26.50
• B)Debt = 50%; Equity = 50%; EPS = $3.05; Common share price = $28.90
• C)Debt = 60%; Equity = 40%; EPS = $3.18; Common share price = $31.20
• D)Debt = 80%; Equity = 20%; EPS = $3.42; Common share price = $30.40