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Corporation A has 8.5 million shares of common stock outstanding, 600,000 shares of 7 percent preferred stock outstanding, and 185,000 of 8.2 percent semiannual bonds

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Corporation A has 8.5 million shares of common stock outstanding, 600,000 shares of 7 percent preferred stock outstanding, and 185,000 of 8.2 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $65.00 per share and has a beta of 1.30, the preferred stock has a par value of $100 and currently sells for $107.00 per share, and the bonds have 15 years to maturity and sell for 91 percent of par. The market risk premium is 6.8 percent, T-bills are yielding 5.5 percent, and the firm's tax rate is 34 percent. What is the firm's market value capital structure? (Do not round intermediate calculations and round your answers to 4 decimal places, e.q.. 32.1616.) What is the firm's cost of each form of financing? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 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? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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