Terrell Trucking Company is in the process of setting its target capital structure. The CFO believes that the optimal debt-to-capital ratio is somewhere between 20% and 50%, and her staff has compiled the following projections for EPS and the stock price at various debt levels: Projected EPS Projected Stock Price $3.05 $32.00 3.60 36.00 3.80 37.75 3.65 33.50 Assuming that the firm uses only debt and common equity, what is Terrell's optimal capital structure? Choose from the options provided above. Round your answers to two decimal places. Debt/Capital Ratio 20% 30 40 50 % debt X % equity At what debt-to-capital ratio is the company's WACC minimized? Choose from the options provided above. Round your answer to two decimal places. X % 30

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Terrell Trucking Company is in the process of setting its torget capital structure. The CFo believes that the optimal debe-to-capital ratio is somewhere between 20% and 50%, and her staff has compled the following projections for EPS and the stock price at vanous debt lovels: Assuming that the firm uses only debt and common equity, what is Terrells optimal captal structure? Choose from the options provided above. Round your answers to two decimal places. Webt 8 \% equity. It what debt to - copital ratio is the compary's WACC minimized? Choose from the options provided above, Round your answer to two decimal places: 3%