EPS and optimal debt ratio Williams Glassware has estimated, at various debt ratios, the expected… 1 answer below »


EPS and optimal claim proportion Williams Glassware has estimated, at multitudinous claim proportions, the expected hues per divide and the measure rupture of the hues per divide as shown in the forthcoming consultation.

Debt proportion

Earnings per divide (EPS)

Standard rupture of EPS

0%

$2.30

$1.15

20

3.00

1.80

40

3.50

2.80

60

3.95

3.95

80

3.80

5.53

a. Estimate the optimal claim proportion on the plea of the alliance between hues per divide and the claim proportion. You get probably furnish it advantageous to graph the alliance.

b. Graph the alliance between the coefficient of departure and the claim proportion. Label the areas associated after a while affair surrender and financial surrender.