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Based on the information below, what is Cali Enterprises optimal capital structure? Debt = 80%, Equity = 20%, EPS = $3.42; Stock Price = $30.00
Based on the information below, what is Cali Enterprises optimal capital structure?
Debt = 80%, Equity = 20%, EPS = $3.42; Stock Price = $30.00
Debt = 60%, Equity = 40%, EPS = $3.18; Stock Price = $31.20
Debt = 50%, Equity = 50%, EPS = $3.05; Stock Price = $28.90
Debt = 40%, Equity = 60%, EPS = $2.95; Stock Price = $26.50
Debt = 70%, Equity = 30%, EPS = $3.31; Stock Price = $30.40
If possible, please explain why.
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