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EPS and optimal debt ratio Williams Glassware has estimated, at various debt ratios, the expected eamings per share and the standard deviation of the earnings
EPS and optimal debt ratio Williams Glassware has estimated, at various debt ratios, the expected eamings per share and the standard deviation of the earnings per share as shown in the following table. (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) a. Estimate the optimal debt ratio on the basis of the relationship between eamings per share and the debt ratio. Maximum EPS appears to be at debt ratio, with per share Jarnings. (Select from the drop-down menus.)
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