2) The "weights" used in the calculation of a firm's weighted average cost of capital should be:

Select one:

a. equal weights in order to reflect the firm's equal opportunity to attract capital by issuing debt, equity, or preferred stock

b. target weights based on the book value proportions of debt, equity, and preferred stock

c. target weights based on market value proportions of debt, equity, and preferred stock

d. increased for debt financing and increased for the riskier equity financing