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17. Your firm is currently financed using 10% Debt and 90% Equity, but you are considering using more financial leverage in order to maximize shareholder

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17. Your firm is currently financed using 10% Debt and 90% Equity, but you are considering using more financial leverage in order to maximize shareholder wealth. Based on the information below, what is the optimal capital structure for your firm? A. Debt - 40%; Equity - 60%; EPS = $1.95; Stock price = $18.50. B. Debt - 50%; Equity - 50%; EPS - $2.05; Stock price - $20.90. C. Debt = 60%; Equity = 40%; EPS = $2.18; Stock price = $21.20. D. Debt = 80%; Equity = 20%; EPS = $2.42; Stock price = $23.40. E. Debt - 70%; Equity = 30%; EPS = $2.31; Stock price = $21.00

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