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Optimal capital structure Jackson Trucking Company is in the process of setting its target capital structure. The CFO believes the optimal debt-to-capital ratio is somewhere
Optimal capital structure
Jackson Trucking Company is in the process of setting its target capital structure. The CFO believes the optimal debt-to-capital ratio is somewhere between 20% and 50%, and her staff has compiled the following projections for EPS and the stock price at various debt levels: Assuming that the firm uses only debt and common equity, what is Jackson's optimal capital structure? Round your answers to two decimal places. % debt % equity At what debt ratio is the company's WACC minimized? %Step by Step Solution
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