For a Typical Corporation,which of the Following Capital Structures Will

Multiple Choice

For a typical corporation,which of the following capital structures will result in the lowest weighted average cost of capital?

A) 40% debt, 20% preferred stock, 40% common equity
B) 50% debt, 10% preferred stock, 40% common equity
C) 60% debt, 10% preferred stock, 30% common equity
D) 60% debt, 15% preferred stock, 25% common equity