Question 3: Valley Tech, has the following capital components in its capital structure: Debt Pref. Stock CE BV($m) 750 1000 Total 50 1800 MV($m) 800 60 1140 2000 Management's stated target capital structure proportions are 40%, 5% and 55% for debt, preferred stock and CE, respectively. Comparable companies have the following MV capital structure: Debt Pref. Stock CE Total X 500 0 1500 2000