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1 Following are the results of the capital structure analysis SoCal nigation your completed Proportion Stock Price of Debt Earnings per Share (EPS) (per shars)

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1 Following are the results of the capital structure analysis SoCal nigation your completed Proportion Stock Price of Debt Earnings per Share (EPS) (per shars) 20% S44.50 S1.20 40 45.IS 1.26 60 45.20 1.22 80 45.95 1.18 According to this information, what is SoCal's optimal capital structure? 60% To determine the optimal capital structure, the market value of the stock must be known 40% 20% 80% Daca Alles Go De Common equity Ft 600 Retained caring, 120 New issue, The firm expects to retain $300,000 in earnings this year to invest in capital in projects the SPS capital is expected to qual what required rate of return, or marginal cost of capital, should be used when evaluating capital budgeting project 11.6094 11.00% 9.80% 9.90% 11.17%

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