15. Finding the WACC [LO3] Given the following information for Watson Power Co. find the WACC. Assume the company's tax rate is 35 percent 10,000 6.4 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 108 percent of par; the bonds make semiannual payments. Debt Common stock: 495,000 shares outstanding, selling for $63 per share; the beta is 1.15 Preferred stock: 35,000 shares of 3.5 percent preferred stock outstanding, currently selling for $72 per share. Market: 7 percent market risk premium and 3.2 percent risk-free rate. Finding the WACC [LO3] Titan Mining Corporation has 7.3 million shares of common stock outstanding, 220,000 shares of 4.5 percent preferred stock outstand- ing, and 120,000 6.5 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $46 per share and has a beta of .95, the pre- ferred stock currently sells for $91 per share, and the bonds have 15 years to maturity and sell for 107 percent of par. The market risk premium is 7 percent, T-bills are 16. yielding 3.6 percent, and the company's tax rate is 35 percent a. What is the firm's market value capital 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 firm use to discount the project's cash flows