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. %

40% or 0.4

Step-by-step explanation:

The optimal capital structure (OCS) of a firm is defined as "the proportion of debt and equity that results in the lowest weighted average cost of capital (WACC) for the firm"

The brief explanation of this is that OCS is the factor used by a company in maximising their stock price, and this generally calls for a Debt-to-capital or "Debit-to-equity" ratio.

From the table above, the company's stock ratio is highest or maximised at 37.75 (under Projected Stock Price Column)

This can be traced to 40% under Debt/Capital ratio column

Hence, the Debt/Capital Ratio of 40%,

Because it must equate to 100%, we say that the firm's optimal capital structure is 40% debt and 60% equity.

This is also the debt to capital ratio, where the firms WACC is minimized.

he used the algebra tiles correctly.

step-by-step explanation:

given : 3x(2x-1)

solution :

since he used algebra tiles .

armando's solution is the same in the solution shown in figure

as he distributed 2x into x and x and wrote them vertically

and also write   -1 vertically

and 3x into x and x and x and wrote it horizontally

performing the multiplication in the algebra tiles we get

and solving the given expression :

3x(2x-1)

since solving the expression using tiles   and solving the expression algebraically we get the same answer

thus   we can choose the first statement as the answer to this problem which is "he used the algebra tiles correctly".

the answer is 9.8975

explanation:

when you multiply the "39.59" with the 25% it reduces it and shows its final discounted price. hope this !

step-by-step explanation: