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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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