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Structure Debt as a % of capital Expected EPS ExpectedBeta(B) Estimated Company Market Value WACC A 0% $1.46 1.83 $165 million 9.89% B 10% $1.59

Structure Debt as a % of capital Expected EPS ExpectedBeta(B) Estimated Company Market Value WACC
A 0% $1.46 1.83 $165 million 9.89%
B 10% $1.59 2.05 $170 million 9.75%
C 20% $1.68 2.39 $162 million 9.96%
D 30% $1.70 2.87 $154 million 10.84%
E 40% $1.54 3.61 $130 million 13.55%

Based on the information in the following table, which capital structure should Beantown Chilis choose for its company?

A) Structure A

B) Structure B

C) Structure C

D) Structure D

E) Structure E

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