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: Assuming that the firm uses only debt and common equity, what is Terrells optimal capital structure? At what debt-to-capital ratio is the companys WACC minimized? Explain.