Management has announced that it wishes to move toward a capital structure composed of 30% debt, 60% common equity and 10% preferred stock financing. Given this: a. Calculate the financing weights in (i) book value terms and (ii) market value terms. b. What are the target financing weights? c. Which set of weights should the firm select? d. What will probably happen to the financial risk of the firm if it decides to adopt the weighting scheme in part c