Question
I found the answers to part one but am having trouble coming up with the answer to b. Titan Mining Corporation has 9.1 million shares
I found the answers to part one but am having trouble coming up with the answer to b.
Titan Mining Corporation has 9.1 million shares of common stock outstanding, 350,000 shares of 4 percent preferred stock outstanding, and 185,000 7.9 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $39 per share and has a beta of 1.55, the preferred stock currently sells for $89 per share, and the bonds have 10 years to maturity and sell for 110 percent of par. The market risk premium is 7.9 percent, T-bills are yielding 5 percent, and Titan Mining's tax rate is 40 percent.
a. | What is the firm |
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