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Review the following situation: Universal Exports Inc. Is trying to identify its optimal capital structure. Universal Exports Inc. has gathered the following financial information to

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Review the following situation: Universal Exports Inc. Is trying to identify its optimal capital structure. Universal Exports Inc. has gathered the following financial information to help with the analysis. Which capital structure shown in the preceding table is Universal Exports Incis optimal capital structure? Debt ratio =60%; equity ratio =40% Debt ratio =50%; equity ratio =50% Debt ratio =30%; equity ratio =70% Debt ratio =40%; equity ratio =60% Which of the following statements regarding a firm's optimal capital structure are true? Chock all that apply. The optimal capital structure minimizes the firm's WACC. The optimal capital structure minimizes the firm's cost of debt. Which capital structure shown in the preceding table is Universal Exports Inci's optimal capital structure? Debt ratio =60%; equity ratio =40% Debt ratio =50%; equity ratio =50% Debt ratio =30%; equity ratio =70% Debt ratio =40%; equity ratio =60% Which of the following statements regarding a firm's optimal capital structure are true? Check all that apply. The optimal capital structure minimizes the firm's WACC. The optimal capital structure minimizes the firm's cost of debt. The optimal capital structure minimizes the firm's cost of equity. The optimal capital structure maximizes the firm's stock price. The optimal capital structure maximizes the firm's EPS. Select the term that corresponds to each of the given descriptions. (Note: There is only one possible answer for each description.)

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