Mirion,Inc

Mirion,Inc.,has a debt-equity ratio of 50%,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?

A) 10.5[V] = 3.5[E] + 3.5[P] + 3.5[D]
B) 10.5[V] = 7 [E] + 3.5[P] + 0[D]
C) 14[V] = 3.5[E] + 3.5[P] + 7[D]
D) D) 14[V] = 7[E] + 3.5[P] + 3.5[D]