BMW		AUDI
Debt @ 5%	$300,000	Debt @ 7%	$700,000
Common Stock @ $3.50 per Share	$700,000	Common Stock @ $3.00 Per Share	$300,000
TOTAL	$1,000,000	Total	$1,000,000
# Shares of Common Stock	200,000		100,000

Based on the information above

	A.	BMW is utilizing a conservative capital allocation method
	B.	AUDI is using a conservative capital allocation method
	C.	They are both conservative.
	D.	Need more information