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. %
6/5 and 7/6
notice that the numbers are 2/1, 3/2, 4/3, and 5/4, with each number having its numerator and denominator one more than the number before it. this means the next two numbers are 6/5 and 7/6.