Which of the following choices indicates an optimal capital structure for ABC Corp.?

Select one:

a. Debt = 40%; Equity = 60%; EPS = $2.95; Stock price = $26.50

b. Debt = 50%; Equity = 50%; EPS = $3.05; Stock price = $28.90

c. Debt = 70%; Equity = 30%; EPS = $3.31; Stock price = $30.00

d. Debt = 80%; Equity = 20%; EPS = $3.42; Stock price = $30.40

e. Debt = 60%; Equity = 40%; EPS = $3.18; Stock price = $31.20 Debt = 60%; Equity = 40%; EPS = $3.18; Stock price = $31.20