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Question 10 (3 points) If Wolves Entertainment Company is acting in the best interests of stockholders (following the primary goal of the firm), which of

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Question 10 (3 points) If Wolves Entertainment Company is acting in the best interests of stockholders (following the primary goal of the firm), which of the following is the optimal (best) capital structure for the firm? 1) Debt/Assets = 40% stock price = $26.50 EPS = $2.95 2) Debt/Assets = 50% stock price - $28.90 EPS = $3.05 O 3) Debt/Assets = 60% stock price = $31.20 EPS = $3.18 4) Debt/Assets - 70% stock price = $30.40 EPS = $3.42

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