Raymond Reddington Corp. has 8.5 million common shares outstanding, 250,000 shares of 5% preferred stock outstanding and 135,000 7.5% semi-annual bonds outstanding, per value of $1000 each. The common stock sells for $34 and has beta of 1.25. The preferred stock currently sells for $91 per share. The bonds have 15 years to maturity and sell for 114% of par. The market risk premium is 7.5%, T-bills are yielding 4% and the company's tax rate is 35%. What is the firm's market value capital structure?

a) 3% bonds, 50% common stock and 47% preferred stock.

b) 25% bonds, 15% common stock and 60% preferred stock.

c) 37% bonds, 5% common stock and 58% preferred stock.

d) 33% bonds, 5% common stock and 62% preferred stock.

D is correct