**************************************If graphs are blurry, please zoom in or save to the computer. They will be clear when you do that

Note: I'm sorry in advance if the picture appears small or blurry. If you right click to save the image to your computer, it will be much larger and clearer. Alternatively, you can use the "zoom" feature in Google Chrome and it will look clearer. Thanks in advance!

Also, the drop-down options for part A are: 0%/20%/40%/60%/80% and $2.34/$2.99/$3.46/$3.92/$3.78

The last drop down above the graphs has options: Graph 1 and Graph 2.

EPS and optimal debt ratio Williams Glassware has estimated, at various debt ratios, the expected earnings 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 corner of the data table below in order to copy its contents into a spreadsheet. Debt ratio 0% Earnings per share (EPS) $2.34 2.99 3.46 3.92 Standard deviation of EPS $1.19 1.81 2.75 3.98 5.58 40 3.78 a. Estimate the optimal debt ratio on the basis of the relationship between earnings per share and the debt ratio. You will probably find it helpful to graph the relationship. b. Graph the relationship between the coefficient of variation and the debt ratio. Label the areas associated with business risk and financial risk. a. Estimate the optimal debt ratio on the basis of the relationship between earnings per share and the debt ratio. Maximum EPS appears to be at debt ratio, with per share earnings. (Select from the drop-down menus.) b. The coefficient of variation for a debt ratio of 0% is 17. (Round to two decimal places.) The coefficient of variation for a debt ratio of 20% is (Round to two decimal places.) The coefficient of variation for a debt ratio of 40% is (Round to two decimal places.) The coefficient of variation for a debt ratio of 60% is (Round to two decimal places.) The coefficient of variation for a debt ratio of 80% is (Round to two decimal places.) Which of the two graphs below correctly depicts the debt ratio vs. the coefficient of variation? The correct graph is (Select from the drop-down menu.) Graph 1 Graph 2 Debt Ratio vs. Coefficient of Variation Debt Ratio vs. Coefficient of Variation J Business risk Financial risk 1.311 Business risk Financial risk Coefficient of Variation Coefficient of Variation 0. 30 60 60 30 Debt Ratio (%) Debt Ratio (%)