According to the following information, what is the firm's optimal capital structure? Proportion Earnings Per Weighted Average Cost of Debt Share (EPS) of Capital (WACC) 30% $2.50 13.2% 40 3.80 12.7...

According to the following information, what is the firm's optimal capital structure?

Proportion Earnings Per Weighted Average Cost

of Debt Share (EPS) of Capital (WACC)

30% $2.50 13.2%

40 3.80 12.7

50 4.75 12.4

60 5.25 12.8

		To determine the optimal capital structure, the market value of the stock must be known.

Jun 09, 2022

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