You have run a regression of debt to capital ratios against independent variables, across all companies in the market, and arrived at the following:

Debt to Capital Ratio = 0.40 + 0.25(Effective Tax Rate) 0.15 (Insider holdings as % of shares outstanding) 0.20 (Standard deviation in operating earnings)

Felter Inc. has an effective tax rate of 30%, insider holdings are 10% of outstanding shares and you have estimated a standard deviation of 50% in the firms operating earnings. What is the optimal debt ratio for Felter Inc., based upon the market regression?