Question
Universal Exports Inc. is trying to identify its optimal capital structure. Universal Exports Inc. has gathered the following financial information to help with the
Universal Exports Inc. is trying to identify its optimal capital structure. Universal Exports Inc. has gathered the following financial information to help with the analysis. Debt Ratio (%) Equity Ratio (%) rd% r3% WACC (%) 30 70 6.02 9.40 9.71 40 60 6.75 9.750 9.55 50 50 7.15 10.60 10.02 60 40 7.55 11.30 10.78 70 30 8.24 12.80 11.45 Which capital structure shown in the preceding table is Universal Exports Inc.'s optimal capital structure?
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
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