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Terrell Trucking Company is in the process of setting its target capital structure . The CFO believes that the optimal debt - to - capital

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 : Debt / Capital Ratio Projected EPS Projected Stock Price 20% $ 3.15 $ 32.25303.4037.75403.7035.50503.5534.00 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 % 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 .%

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