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Review this situation: Universal Exports Inc. is trying to identify its optimal capital structure. Universal Exports Inc. has gathered the following financial information to help
Review this 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 Debt Ratio Equity Ratio rd WACC 30% 70% 6.02% 9.40% 9.71% 40% 60% 6.75% 9.750% 9.55% 7.15% 10.60% 10.02% 50% 50% 7.55% 11.30% 10.78% 60% 40% 70% 30% 8.24% 12.80% 11.45% Which capital structure shown in the preceding table is Universal Exports Inc.'s optimal capital structure? O Debt ratio 30 equity ratio 70% O Debt ratio 70%; equity ratio 30% O Debt ratio 60%; equity ratio 40%. O Debt ratio 40%; equity ratio 60% O Debt ratio 50%; equity ratio 50% Consider this case: Globo-Chem Co. is an a equity firm, and it has a beta of 1. It is considering changing its capital structure to 65% equity and 35% debt. The firm's cost of debt will be 6%, and it will face a tax rate of 35%. What will Globo-Chem Co.'s beta be if it decides to make this change in its capital structure
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