New Heritage currently a Debt to Asset ratio of 33.33%, but Caleb feels its optimal Debt to Asset ratio should be 16.67%. Sales are currently $750,000 and total asset turnover (Sales/Asset) is 7.5. If New Heritage needs to raise $100,000 to expand how should the expansion be financed so to produce the desire debt ratio? Expansion should be finance with:

A- 25% debt, 75% equity

B- 100% debt

C- 25% equity, 75% debt

D- 100% equity