Microsoft Ltd has estimated the expected earnings per share and the standard deviation of earnings...

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Microsoft Ltd has estimated the expected earnings per share and the standard deviation of earnings per share at various levels of debt. At which level of debt is the coefficient of variation of EPS the lowest? Debt ratio EPS Standard deviation of EPS 0% $3.50 $2.60 20 $3.80 $2.80 40 $4.00 $3.00 60 $4.90 $3.20 80 $5.50 $3.70 Select one: a. 80% b. 0% O c. 60% O d. 20% O e. 40%

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