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i put it 4 time every disconunt rate is not true if you do not know the answer do not do it i tried to
i put it 4 time every disconunt rate is not true if you do not know the answer do not do it i tried to add comment and no one help me with this answer
5 Titan Mining Corporation has 7.2 million shares of common stock outstanding, 260,000 shares of 4.4 percent preferred stock outstanding, and 145,000 bonds with a semiannual coupon rate of 5.5 percent outstanding, par value $2,000 each. The common stock currently sells for $65 per share and has a beta of 1.15, the preferred stock has a par value of $100 and currently sells for $91 per share, and the bonds have 15 years to maturity and sell for 105 percent of par. The market risk premium is 7.5 percent, T-bills are yielding 3.1 percent, and the company's tax rate is 21 percent. 8.33 points a. What is the firm's market value capital structure? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) b. If the company 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 enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.) Answer is complete but not entirely correct Debt Preferred stock Equity 0.3825 0.0297 0.5878 b. Discount rate 10.16 x% McStep by Step Solution
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