Question
Based on the information below for Benson Corporation, what isthe optimal capital structure? a. Debt = 50%; Equity = 50%; EPS = $3.05; Stock price
Based on the information below for Benson Corporation, what isthe optimal capital structure?
a. Debt = 50%; Equity = 50%; EPS = $3.05; Stock price =$28.90.
b. Debt = 60%; Equity = 40%; EPS = $3.18; Stock price =$31.20.
c. Debt = 80%; Equity = 20%; EPS = $3.42; Stock price =$30.40.
d. Debt = 70%; Equity = 30%; EPS = $3.31; Stock price =$30.00.
e. Debt = 40%; Equity = 60%; EPS = $2.95; Stock price =$26.50.
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