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OptIMaL CapItaL strUCtUreTerrell Trucking Company is in the process of setting its target capital structure. The CFO believes that the optimal debt - to -

OptIMaL CapItaL strUCtUreTerrell Trucking Company is in the process of setting its target capital structure. The CFO believes that the optimal debt-to-capital ratio is some-where between 20% and 50%, and her staff has compiled the following projections for EPS and the stock price at various debt levels:Debt/Capital ratioprojected epsprojected stock price 20%$3.10$34.25303.5536.00403.7035.50503.5534.00

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