Levenworth Industries has the following capital structure on December 31, 2006:\ \ \ \ Market Value Book Value\ \ Debt outstanding $10.5 million $8 million\ \ Preferred stock outstanding $1.5 million $2 million\ \ Common stock outstanding $13.7 million $10 million\ \ Total capital $25.7 million $20 million\ \ \ \ What are the weights on debt and preferred stock in the firms capital structure?\ \ \ Weight on debt: 0.40; Weight on preferred stock: 0.10\ \ \ Weight on debt: 0.40; Weight on preferred stock: 0.06\ \ \ Weight on debt: 0.41; Weight on preferred stock: 0.10\ \ \ Weight on debt: 0.41; Weight on preferred stock: 0.06\ \ \ None of the above