22) The following information is provided for JoJo Inc.

Year 2010 2011 2012 2013 2014

Current ratio 1 1.2 1.2 1.1 1

Quick ratio .5 .6 .5 .4 .6

EM 1 2 2.5 4 3

TIER 6 6 7 8 6

PM .10 .12 .11 .13 .14

Firm Value $100 $150 $180 $140 $160

Year 2015 2016 2017 2018 2019

Current ratio 1 1.2 1.2 1.1 1

Quick ratio .5 .6 .5 .4 .6

EM 1 2 2.5 4 3

TIER 6 6 7 7 6

PM .10 .12 .11 .14 .13

Firm Value $100 $150 $180 $140 $160

If you were a consultant for the company and watched the optimal capital structure presentations, what would you recommend as the optimal capital structure, as measured by EM? Please put the number on the answer sheet.