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16 . Finding the WALL . Organic Produce Corporation has 6.3 million shares of CONDITION stock outstanding, 350, 000 shares of 5. 8 PERCENT Preferred

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16 . Finding the WALL . Organic Produce Corporation has 6.3 million shares of CONDITION stock outstanding, 350, 000 shares of 5. 8 PERCENT Preferred stock outstanding and 150, 000 OF 7 . 1 PERCENT SEMIannual bonds outstanding, par Value $ 1, 0DO Each . The Common Stock currently SELLS for $ 7 4 per share and has a beta of 1. 09, the preferred stock currently sells for $ 10 ? per share . and the bonds have 20 Years to maturity and sell for 109 percent of par . The Market risk PREMILIUIII is 6. 8 percent , I- bills are wielding 4. 3 percent , and the firm's tax rate 15 3 4 PERCENT . What is the firm's Market value capital Structure ?" D . If the film 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 ?"

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