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Based on the following table, which capital structure should the firm choose? Capital structure EPS P / E ratio 0 % debt $ 2 .

Based on the following table, which capital structure should the firm choose?
Capital structure
EPS
P/E ratio
0% debt
$2.00
7.50
20% debt
$2.75
6.36
50% debt
$3.50
6.28
70% debt
$4.00
5.44
80% debt
$4.05
5.00

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