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Based on the information below for Benson Corporation, what is the optimal capital structure? Debt = 50%; Equity = 50%; EPS = $3.05; Stock price

  1. Based on the information below for Benson Corporation, what is the optimal capital structure?

    1. Debt = 50%; Equity = 50%; EPS = $3.05; Stock price = $28.90.

    2. Debt = 60%; Equity = 40%; EPS = $3.18; Stock price = $30.20.

    3. Debt = 80%; Equity = 20%; EPS = $3.42; Stock price = $30.40.

    4. Debt = 70%; Equity = 30%; EPS = $3.31; Stock price = $30.00.

    5. Debt = 40%; Equity = 60%; EPS = $2.95; Stock price = $28.20

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