7. If a firm has currently 45% equity and 55% debt in its capital structure but is getting ready to change it to 70% equity and 30% debt, then in the WACC calculations for capital budgeting the firm should use the following weights:

Question 7 options:

	A) 70% equity and 30% debt
	B) 55% equity and 45% debt
	C) 30% equity and 70% debt
	D) 45% equity and 55% debt
	E) 5% equity and 45% debt