10. Determining the optimal capital structure Review the following situation: Universal Exports Inc. is trying to identify its optimal capital structure. Universal Exports Inc. has gathered the following financial information to help with the analysis. Which capital structure shown in the preceding table is Universal Exports Inc.'s optimal capital structure? Debt ratio =40%; equity ratio =60% Debt ratio =70%; equity ratio =30% Debt ratio =50%; equity ratio =50% Debt ratio =60%; equity ratio =40% Axis Chemical Co. has found that its expected EPS is maximized at a debt ratio of 45%. Does this mean that Axis Chemical Co.'s optimal capital structure calls for 45% debt? No Yes