A firm's capital structure consists of the following market weights and after-tax costs:

Source of Capital	Market Weights	After-Tax Cost
Long-Term Debt	40%	6%
Preferred Stock	25%	12%
Common Stock	35%	15%

Other things remaining constant, if the firm were to shift toward a capital structure with ____ its weighted average cost of capital will decrease.

answer choices

Long-Term Debt: 35%; Preferred Stock: 35%; Common Stock Equity: 30%

Long-Term Debt: 45%; Preferred Stock: 15%; Common Stock Equity: 40%

Long-Term Debt: 30%; Preferred Stock: 40%; Common Stock Equity: 30%

Long-Term Debt: 35%; Preferred Stock: 40%; Common Stock Equity: 25%