a and b

LO 3 15. Finding the WACC Lingenburger Cheese Corporation has 6.4 million shares of common stock outstanding; 200,000 shares of 3.8 percent preferred stock outstanding, par value of $100; and 120,000 bonds with a semiannual coupon of 4.8 percent outstanding, par value $1,000 each. The common stock currently sells for $54 per share and has a beta of 1.08 , the preferred stock currently sells for $103 per share, and the bonds have 15 years to maturity and sell for 107 percent of par. The market risk premium is 7.5 percent, T-bills are yielding 2.4 percent, and the firm's tax rate is 22 percent a. What is the firm's market value capital structure? b. If the firm 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