Question 1 (2 points)

Which of the following capital structures is optimal?

Debt	Equity	EPS	Stock Price
40%	60%	$2.95	$26.50
50%	50%	$3.05	$28.90
60%	40%	$3.18	$31.20
70%	30%	$3.31	$30.00
80%	20%	$3.42	$30.40

Question 1 options:

	40% debt
	50% debt
	60% debt
	70% debt
	80% debt