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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 ratio is somewhere between 20%.

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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 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 Terrelis optimal capital structure? Choose from the options proyided above. Round your answers two decimal plices We debt Or equity. At what debt-to-capital ratio is the company's. WACC minimized? Choose from the options provided aboye. Round your answer to two decimal places

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