oda Plc is a producer of chemical products, the company is considering to its debt ratio to the optimal level which is 35%, the current debt ratio is 15%. npany has a beta of 1.87, and the current rate on Government treasury bond is 3%. e premium for comparable firms in the same industry is 5.5%,The company return ly was 14%, in the most recent years but is dropping as the industry is in a on mature stage. Recently the company paid dividend of $1.5 a share, The shares ompany are widely held and are trade at a price of $7. Assume zero growth dyou suggest that Dacoda should moves towards its optimal debt, Explain why your answer by calculations )(2 marks ) would you recommend that Dacoda increase its debt ratio (2marks) oda Plc is a producer of chemical products, the company is considering to its debt ratio to the optimal level which is 35%, the current debt ratio is 15%. npany has a beta of 1.87, and the current rate on Government treasury bond is 3%. e premium for comparable firms in the same industry is 5.5%,The company return ly was 14%, in the most recent years but is dropping as the industry is in a on mature stage. Recently the company paid dividend of $1.5 a share, The shares ompany are widely held and are trade at a price of $7. Assume zero growth dyou suggest that Dacoda should moves towards its optimal debt, Explain why your answer by calculations )(2 marks ) would you recommend that Dacoda increase its debt ratio (2marks)