Klearcut Forestry Inc. generates perpetual annual EBIT of $100 million. Assume that the EBIT, and all other cash flows, occur at year-end and that we are currently at the beginning of a year. Assume that all of the perfect market M&M assumptions hold and that the corporate tax rate is 35%. The CFO of Klearcut is trying to determine the company's optimal capital structure. Which of the debt-to-equity ratios listed below will maximize Klearcut's value? A) D/E = 0.5 B) D/E = 1.0 C) D/E = 1.5 D) D/E = 2.0 E) D/E = 2.5