Biotec has estimated the costs of debt and equity capital for various proportions of debt in its

capital structure:

% of Debt	Cost of Debt	Cost of Equity
35	5.4%	13.8%
40	5.6	14.0
45	5.9	14.3
50	6.4	14.7

If Biotec pays a current dividend of $1.50 and expects dividends to grow at a constant rate of 7%, what is the stock price if it obtains its optimal capital structure? What does the capital structure mean?