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.