This is an optimal debt ratio calculator. Using macro and micro inputs, it outputs a target debt ratio for a firm. Note: Outputed values do not take into account possible options value of having lower debt.

1) Enter beta; Riskfree rate; Equity risk premium; Firm EBIT; Firm book value of equity; Effective tax rate for firm
2) Click submit.

Firm has a high or low corporate bond rating compared to its interest coverage ratio; beta measure is inaccurate