EWINT Bhd. has a target debt equity ratio of 0.60. The debt consists of 7.5 percent semi-annual coupon bonds with a maturity of 15 years and are Currently selling for 95.65 percent of par. The companys share is currently priced at $34 per share and has a beta of 1.05. The market risk premium is 8%, treasury bills are yielding at 5%. The relevant tax rate is 21 percent.

a. Calculate the firms market value capital structure and the weights of the capital structure. b. If EWINT Bhd. is evaluating a new investment project that has the same risk as the firms typical project, caIculate the rate that the firm should use to discount the project's cash flow.