12. Finding the WACC Titan Corporation has 5.4 million shares of common stock outstanding and 125,000 5.8 percent semiannual bonds outstanding, with a par value of $1,000 each. The common stock currently sells for $53 per share and has a beta of 1.15; the bonds have 25 years to maturity and sell for 103 percent of par. The market risk premium is 6.8 percent, T-bills are yielding 2.9 percent, and the company's tax rate is 22 percent. a. What is the firm's market value capit structure? b. If the company is evaluating a new investment project that has the same risk as the firm's typical project, what rate should the fir use to discount the project's cash flows?

12. Finding the WACC Titan Corporation has 5.4 million shares of common stock outstanding and 125,0005.8 percent semiannual bonds outstanding, with a par value of $1,000 each. The common stock currently sells for $53 per share and has a beta of 1.15 ; the bonds have 25 years to maturity and sell for 103 percent of par. The market risk premium is 6.8 percent, T-bills are yielding 2.9 percent, and the company's tax rate is 22 percent. a. What is the firm's market value capithe structure? b. If the company is evaluating a new investment project that has the same risk as the firm's typical project, what rate should the fir use to discount the project's cash flows