From the information below,select the optimal capital structure for Mountain High Corp.
A) Debt = 40%;Equity = 60%;EPS = $2.95;Share price = $26.50
B) Debt = 50%;Equity = 50%;EPS = $3.05;Share price = $28.90
C) Debt = 60%;Equity = 40%;EPS = $3.18;Share price = $31.20
D) Debt = 80%;Equity = 20%;EPS = $3.42;Share price = $30.40
E) Debt = 70%;Equity = 30%;EPS = $3.31;Share price = $30.00
Correct Answer:
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