2021
Debt/Capital Ratio	Projected EPS	Projected Stock Price
20%	$ 4.20	$ 44.25
30%	$ 4.45	$ 46.00
40%	$ 4.50	$ 55.50
50%	$ 4.80	$ 54.00
2022
Debt/Capital Ratio	Projected EPS	Projected WACC
25%	$ 4.25	12.89%
35%	$ 4.55	11.33%
45%	$ 4.80	13.22%
55%	$ 4.75	15.40%

See the Question 2 tab in the attached Excel file for the 2021 and 2022 tables referenced in the question below.

It is 2021 and your company is in the process of setting its target capital structure. The CFO believes that the optimal debt-to-capital ratio is somewhere between 20% and 50%, and her staff has compiled a table of projections for EPS and the stock price at various debt levels. The 2021 table is found in the attached Excel file.

Assuming that the firm uses only debt and common equity, what is the optimal capital structure for 2021 (give percentage of debt and equity)? Blank 1

Now, it is 2022 and your company is re-evaluating its target capital structure. The CFO now believes that the optimal capital structure is between 25% and 55%, and staff have compiled a table of projections for EPS and WACC at various debt levels. See the 2022 table in the attached Excel file.

Assuming that the firm uses only debt and common equity, what is the optimal capital structure for 2022 (give percentage of debt and equity)? Blank 2