4. 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. Debt Ratio (%) Equity Ratio (%) EPS ($) DPS ($) Stock Price ($) 30 70 1.25 0.55 36.25 40 60 1.40 0.60 37.75 50 50 1.60 0.65 39.50 60 40 1.85 0.75 38.75 70 30 1.75 0.70 38.25 Which capital structure shown in the preceding table is Universal Exports Inc.'s optimal capital structure? O Debt ratio = 40%, equity ratio = 60% Debt ratio = 50%; equity ratio = 50% O Debt ratio = 60%; equity ratio = 40% O Debt ratio = 70%; equity ratio = 30% O Debt ratio = 30%, equity ratio = 70%