Yeah Nah Ltd wishes to determine the value of its shares under alternative capital structures. All earnings are paid out as dividends, and earnings will be constant forever given a particular capital structure. The risk-free rate is 4% and the expected return on the market is 10%. Given the information below, at which level of debt is the share value maximised? At a debt ratio of 20% because the required return on the shares will only be 11.2%. At a debt ratio of 20% because the price of the shares will be $9.10. At a debt ratio of 40% because the share price is maximised when the EPS is maximised. At a debt ratio of 40% because the price of the shares will be $9.10. At a debt ratio of 30% because the price of the shares will be $8.98