Brew claws company has collected the following data concerning its capital structure, expected earnings per share, and required return.

Capital Structure (debt ratio)	Expected Earnings per share	Investor required return (Rs)
0.00%	$6.24	13%
10%	$7.80	15%
20%	$9.60	16%
30%	$10.88	17%
40%	$11.02	19%
50%	$10.00	20%
60%	$8.80	22%

1. Using the capitalized earnings method (EPS/rs), compute the estimated share values associated with each of the capital structures.

2. Select the optimal capital structure on the basis of:

A. Maximization of expected earnings per share. B. Maximization of share value.

3. Which capital structure do you recommend? Why?