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l Exports Inc. is trying to identify its optimal capital structure. Universal Exports Inc. Review this situation: Universa has gathered the following financial information to

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l Exports Inc. is trying to identify its optimal capital structure. Universal Exports Inc. Review this situation: Universa has gathered the following financial information to help with the analysis. WACC 9.71% 9.55% 10.02% 10.78% 11.45% Debt Ratio Equity Ratio rd 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% which 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 50%; equity ratio-50% Debt ratio-60%; equity ratio 40% Consider this case: Globo-Chem Co. has a capital structure that consists of 40% debt and 60% equity. The firm's current beta is 1.15 but management wants to understand Globo-Chem Co.'s market risk without the effect of leverage If Globo-Chem Co. has a 45% tax rate, what is its unlevered beta? O 0.97 O 0.84 O 1.01 0.71

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