A firm's current structure is as follows:

Debetnures	$5,000,000
Mortgage bonds *	2,000,000
Preferred stock	1,000,000
Common stock	4,000,000
Total	$12,000,000

*Secured by fixed assets.

Suggest a recapitalized capital structure that would reduce the debt/equity ratio (several solutions are feasible). Calculate the d/e ratio for the pre-reorganization capital structure and the post-reorganization capital structure.