Use the following information and calculate the capital structure weights.

Debt information:1,900 bonds outstanding.Its bonds have a 7 percent coupon, paidsemi-annually, with 8 years to maturity, and are currently selling at $980.Par value is $1,000.

Equity information:40,000 shares outstanding.The firm is a constant dividend growth firm which is expected to pay a dividend of $1.08 a share, sells for $20 per share, and has a dividend growth rate of 3 percent.

a.w_d= 30%, w_e= 70%

b.w_d= 70%, w_e= 30%

c.w_d= 40%, w_e= 60%

d.w_d= 60%, w_e= 40%