QUESTION 2 Towson Towing Company is making a decision about its optimal capital structure, which is the one that minimizes the weighted average cost of capital. The CFO has prepared the following chart showing the projections for earnings per share (EPS) and stock price at various debt levels. Based on the chart what is the optimal capital structure? Debt to Capital Ratio Projected Stock Price 30% 26.88 Projected EPS $ 1.68 $ 1.74 $ 1.85 $ 1.90 $ 1.92 $ $ 40% 29.58 50% 27.75 60% $ $ $ 22.80 70% 22.11 O 30% 40% O 50% O 60% O 70%