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Dutermining the optimal capital structure Understanding the optimal capital structure Review this situation: Universal Exports Inc. is trying to identify its optimal capital structure. Universal

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Dutermining the optimal capital structure Understanding the optimal capital structure Review this situation: Universal Exports Inc. is trying to identify its optimal capital structure. Universal Exports Inc. has gathered the following financial information to help with the analysis. Debt Ratio Equity Ratio 30% 40% 50% 60% 70% 70% 60% 50% 40% 30% 6.02% 6.75% 7.15% 7.55% 8.24% 9.40% 9.750% 10.60% 11.30% 12.80% WACC 9.71% 9.55% 10.02% 10.78% 11.45% wWhich capital structure shown in the preceding table is Universal Exports Inc.'s optimal capital structure? o Debt ratio 40%; equity ratio 60% Debt ratio #70%, equity ratio 30% Debt ratio 30%; equity ratio 70% O Debt ratio-60%; equity ratio-40% Debt ratio-50%; equity ratio 50% Consider this case of asst debt and 65% equity. The firm's current beta is 1.15, but Globox Corp. has capital structure mat consists managoment wents to underetane Glohex Carp 's matket Visk thout the ertect of lavcrage Type here to seareh

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