Name: ID: A 39. The firm's target capital structure should do which of the following? a. Maximize the earnings per share (EPS) b. Minimize the cost of debt (d) c. Obtain the highest possible bond rating. d. Minimize the cost of equity (s). e. Minimize the weighted average cost of capital (WACc). 40. Fauver Industries of 40% debt and 60% equity, and it also wants to pay a dividend of$275,000. If the company follows the residual dividend model, how much net income must it earn to meet its investment requirements, pay the dividend, and keep the capital structure in balance? a, $695,000 b. $827,050 c. $868,750 d. $771,450 e. $743,650 Rule of 72 vse the rde not a caled hhat wodd 5000 wstd at 12% gre to 36 years in 12 S,000