DTK, Inc. uses both preferred and common stock as well as long-term debt to finance its operations. All else being equal, an increase in which one of the following will increase the capital structure weight of the debt?

Group of answer choices

Market price of the common stock

Number of shares of preferred stock outstanding

Book value of the outstanding shares of common stock

Number of bonds outstanding

Number of shares of stock outstanding

The capital structure weights used in computing the weighted average cost of capital ______.

Group of answer choices

are based on the book values of total debt and total equity

are based on the market value of the firm's debt and equity securities

are computed using the book value of the long-term debt and the book value of equity

remain constant over time unless the firm issues new securities