Which one of the following statements concerning capital structure weights is correct?

Multiple Choice

Target capital structure rates for a firm are irrelevant to individual projects.

The repurchase of preferred stock will increase the weight of debt.

The issuance of additional shares of common stock will increase the weight of both the common and preferred stock.

The weights are unaffected when a bond issue matures.

An increase in the debt-equity ratio will increase the weight of the common stock.