1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
solniwko [45]
3 years ago
14

Based on the information below, what is the firm's optimal capital structure? a. Debt = 40%; Equity = 60%; EPS = $2.95; Stock pr

ice = $26.50. b. Debt = 50%; Equity = 50%; EPS = $3.05; Stock price = $28.90. c. Debt = 60%; Equity = 40%; EPS = $3.18; Stock price = $31.20. d. Debt = 80%; Equity = 20%; EPS = $3.42; Stock price = $30.40. e. Debt = 70%; Equity = 30%; EPS = $3.31; Stock price = $30.00
Business
1 answer:
Ronch [10]3 years ago
7 0

Answer:

The optimal capital structure is 60% debt and 40% equity.

The correct answer is C

Explanation:

Optimal capital structure is a debt-equity mix that maximizes the stock price. Option C is a debt-equity mix that maximizes the stock price of the company.

You might be interested in
How, specifically, do equal employment laws apply to personnel recruiting activities?
dimulka [17.4K]

Equal Employment laws protect employees from facing discrimination in the hiring process.

Explanation:

Equal Employment Laws are there to protect the right of a candidate to have equal opportunities compared to their peers and not to be discriminated against in terms of caste, creed, race or gender when in the recruiting activities.

This law exists to provide equal opportunities to the candidates to be able to be selected on merit for the jobs and not to be left behind because of their disadvantages in the social strata from employment as long as they are capable for the jobs.

6 0
3 years ago
The focus of management accounting is onA) tax preparation.B) external reporting.C) internal reporting.D) auditing.
Studentka2010 [4]

Answer: The focus of management accounting is on "C) internal reporting.".

Explanation:  It could be understood as the concept of management accounting as that economic information destined to the internal users of the company and which is mainly responsible for the analysis of the costs of the company, helping to make management decisions and business control.

5 0
3 years ago
The danger associated with the abuse of a vehicle is compared to the danger of _____
Dmitrij [34]
The danger associated with the abuse of a vehicle is compared to the danger of a loaded gun that could cause injury or worst death if being abused. Most tragic incidents in the streets/roads are due to vehicular accidents that cause many damages, including the loss life.

3 0
3 years ago
Rosita purchased a bond for $989 that had a 7% coupon and semiannual interest payments. She sold the bond after 6 months and ear
Len [333]

Answer:

The price she sold the bond is $1,001.47

Explanation:

The formula for yield return in given as ;

Yield to maturity= (Annual interest+ per value - market price ÷ numbers of years to maturity)/per value+ market price÷ 2

048 = (Selling price + [(.07 × $1,000)/2] - $989)/$989

Making selling price the subject of formula we have this as the abswer

Selling price = $1,001.47

3 0
3 years ago
What year was the sale of goods and supply of services act passed ?
velikii [3]
It was passed in 1979.
3 0
3 years ago
Other questions:
  • The purpose of the abstract of title is to :
    12·1 answer
  • Assume $1,000 is deposited in a checkable account by Mr. Y in Bank A. Assume further that the reserve requirement is 0.10. The i
    9·1 answer
  • Dawn grew up helping her father work on cars in his auto repair shop and developed into an excellent auto technician. Because of
    14·1 answer
  • When a negotiable instrument is transferred, the transferor warrants all of the following EXCEPT:_______
    13·1 answer
  • 1. A system held inventory to protect it from uncertainties in supply. In an effort to be lean, this inventory is used and not r
    14·1 answer
  • Using the following data, develop an allowance percentage for a job element that requires the worker to lift a weight of 30 poun
    14·1 answer
  • Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks.
    6·1 answer
  • Lamont Company produced 80,000 machine parts for diesel engines. There were no beginnings or ending work-in-process inventories
    6·1 answer
  • Which person would need the least amount of collision coverage from their auto insurance?
    12·1 answer
  • 1.the profit maximizing monopolist would achieve loss minimization when... a.total cost equals total revenue. b.price is below a
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!