Which one of these would be the optimal capital structure

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Which one of these would be the optimal capital structure and can you tell me why?

Debt = 40%; equity = 60%; ESP = $2.95; stock price = $26.50
Debt = 50%; equity = 50%; ESP =$ 3.05; stock price = $28.90
Debt = 60%; equity = 40%; ESP =$ 3.18; stock price = $31.20
Debt = 80%; equity = 20%; ESP =$ 3.42; stock price = $30.40
Debt = 70%; equity = 30%; ESP =$ 3.31; stock price = $30.00

 

Reference no: EM13305485

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