Independence Mining Corporation has 7 million shares of common stock outstanding, 1 million shares of 6% preferred stock outstanding, and 100,000 9% semiannual bonds outstanding, par value $1000 each. The common stock currently sells for $35 per share and has a beta of 1.0, the preferred stock currently sells for $60 per share, and the bonds have 15 years to maturity and sell for 89% of par. The market risk premium is 8%, T- bills are yielding 7%, and Independence Minings tax rate is 34%. a. What is the firms market value capital structure? b. If Independence Mining 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?