Hankins Corporation has 5.7 million shares of common stock outstanding, 306,000 shares of 4.3 percent preferred stock outstanding, par value of $100, and 165,000 5.3 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $73.20 per share and has a beta of 1.13, the preferred stock currently sells for $104.60 per share, and the bonds have 22 years to maturity and sell for 104 percent of par. The market risk premium is 6.9 percent, T-bills are yielding 3.5 percent, and the firms tax rate is 23 percent.

What is the firm's market value capital structure?

-market value weight of debt

-market value weight of preferred stock

-market value weight of equity

What is firms cost of each form of financing?

-aftertax cost of debt

-cost of preferred stock

-cost of equity

If the firm is evaluating a new investment project that has the same risk as the firms typical project, what rate should the firm use to discount the projects cash flows?

-weighted average cost of capital