Balance sheet data Bonds (8% due 2037) $122.0 million Preferred stock (2 million shares at $5 par value) S 10.0 million Common stock (4 million shares at $7 par value) 28.0 million Additional paid-in capital 30.0 million Retained earnings 130.0 million Total liabilities and equity $320.0 million Market price for bonds $1,200 Market price for common stock $ 135 Market price for preferred stock $ 8 Management has announced that it wishes to move toward a capital structure composed of 30% debt and 70% equity, with 10% of the equity as preferred stock. Given this: a. Calculate the financing weights in book value terms. b. Calculate the financing weights in market value terms. c. What are the target financing weights? d. Which set of weights should the firm select? e. What will probably happen to the financial risk of the firm if it decides to adopt the weighting scheme in parte