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. Problem 13.02 (Optimal Capital Structure) ebook Terrell Trucking Company is in the process of setting its target capital structure. The CFO believes that the

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. Problem 13.02 (Optimal Capital Structure) ebook Terrell Trucking Company is in the process of setting its target capital structure. The CFO believes that the optimal debt-to-capital ratio in somewhere between 20% and 50%, and her staff has compiled the following projections for EPS and the stock price at various debt levels Debt/Capital Ratio Projecte EPS Projected Stock Price 20% $3.15 $32.75 30 3.50 36.50 40 3.70 36.00 50 3.60 33.00 Assuming that the Ormuses only debt and common equity, what is Terrell's optimal capital structure? Choose from the options provided above. Round your answers to two decimal places We debt equity At what debt to capital ratio is the company's WACC minimized? Choose from the options provided above. Round your answer to two decimal places Grade it Now Save & Continue

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