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

$20\%$

$30$

$40$

$50$

Projected EPS

$$3\mathrm{.}15$

$3\mathrm{.}55$

$3\mathrm{.}90$

$3\mathrm{.}65$

Projected Stock Price

$$35\mathrm{.}00$

$37\mathrm{.}25$

$36\mathrm{.}75$

$34\mathrm{.}00$

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.

$\%$