Terrell trucking company is in the process of setting its target capital structure. the cfo believes that the optimal debt-to-capital ratio is somewhere between 20% and 50%, and her staff has compiled the following projections for eps and the stock price at various debt levels: debt/capital ratio projected eps projected stock price 20% $3.00 $34.75 30 3.65 36.50 40 3.80 37.75 50 3.55 32.25 assuming that the firm uses only debt and common equity, what is terrell's optimal capital structure? round your answers to two decimal places. % debt % equity at what debt-to-capital ratio is the company's wacc minimized? round your answer to two decimal places. %
solutions are (0,2) and (-1,4).
there are two equations given for which graphing is to be done.
equations are y = -2x+)
and y = -x²-3x+)
now we will solve the equations to get the values of x and y or the coordinates of intersection of these two graphs.
by substituting y from equation 2 into equation 1.
- x²-3x+2 = -2x+2
-x²-3x+2x = 0
-x²-x = 0
x²+x = 0
x(x+1)=0 ⇒ x = 0 and x = -1
now we put these values of x in equation 2.
for x = 0 y = -2×0+2 = 2
for x = -1 y = 2+2 = 4
so they intersect each other at (0,2) and (-1,4).
answer: b i think
$2.50 x 3 = $7.50
31.50-7.50 = $24
24/3 = $8
the answer is $8 per pizza slice
d. |–c| = 3 and –|d| = 4
we are given these values of two variables and asked which of the statements in the given options is true:
c = –3 and d = 4
in mathematics, we know that the absolute value or modulus of a real number x is the non-negative value of x despite of whatever sign it has, positive or negative.
therefore, the modulus of c |–c| = 3 and modulus of –|d| = 4 so option d is the correct one.