42. DDR Enterprises is looking for its optimal capital management has investigated the following four capital structures. Stock Price $44.05 $44.80 $45.15 $43.90 80%ry_ -Beta 20% 30% 40% 50% 70% 60% 50% 1.25 1.50 1.75 1.95 B. What is DDR's optimal capital structure? a. Option A b. Option B C. Option C d. Option D 43. You own 40 shares of Esmerelda Doorstops Co. The firm's E.P.S. are $3.60. Wha will be the EP.S, after a 25% stock dividend? a. $1.44 b. $2.70 c. $2.88 d. $4.50 44. MLDR, Inc. has $1 million in total assets. The company is expecting an EBIT o $360,000 next year. The company's capital structure consists of $500,000 la debt with a 12% coupon and 50,000 shares of common stock with a $20 par Dividends are 30% of Net Income. The tax rate is 40%. What will be the co Earnings Per Share? a. $2.40 b. $2.52 c. $3.60 d. $7.20 45. The discount rate which equates the present value of a capital budgeting pr flows to its initial investment is the a. profitability index b. internal rate of return c. cost of capital d. modified internal rate of return