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8. BS Corporation has, 250,000 shares of 6% preferred stock outstanding, 105,000 7.5 percent semiannual bond outstanding, par value of RM1000 each and 9 million

8. BS Corporation has, 250,000 shares of 6% preferred stock outstanding, 105,000 7.5 percent semiannual bond outstanding, par value of RM1000 each and 9 million shares of common stock outstanding. The common stock has a beta of 1.25 and currently sells for RM34 per share. The preferred stock currently sells for RM91per share and the bond have 15 years to maturity and sells for 93% of par. The market risk premium is 8.5 percent. T-bills are yielding 5%. BS Corporation tax is at 35%. a. What is the firms market value capital structure

b. If BS Corporation is evaluating a new investment project that has the same risk as the firms typical project, calculate WACC.

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