Need help with this question. Which of the options is the correct answer, please give an explanation

Mirion, Inc., has a debt-equity ratio of 50 percent, with no preferred stock. However, Mirion now plans to raise enough preferred stock to retire half of its outstanding common stock. Its common equity is currently valued at $7 million. Which of the following choices displays Mirion's market value capital structure, in market values (i.e., V = D + P + E), after the preferred stock issue?

14[V] = 7[E] + 3.5[P] + 3.5[D]. 10.5[V] = 7 [E] + 3.5[P] + 0[D]. 14[V] = 3.5[E] + 3.5[P] + 7[D]. 10.5[V] = 3.5[E] + 3.5[P] + 3.5[D].