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%	$3.30	$35.00
30	3.55	36.00
40	3.85	37.25
50	3.55	33.25

a. Assuming that the firm uses only debt and common equity, what is Terrell's optimal capital structure? Round your answers to two decimal places.

___% debt ___ % equity

b. At what debt-to-capital ratio is the company's WACC minimized? Round your answer to two decimal places.

____ %