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Lingenburger Cheese Corporation has 6 . 5 million shares of common stock outstanding, 2 3 0 , 0 0 0 shares of 3 . 8

Lingenburger Cheese Corporation has 6.5 million shares of common stock outstanding, 230,000 shares of 3.8 percent preferred stock outstanding, par value of $100; and 115,000 bonds with a semiannual coupon rate of 5.5 percent outstanding, par value $1,000 each. The common stock currently sells for $71 per share and has a beta of 1.05, the preferred stock has a par value of $100 and currently sells for $85 per share, and the bonds have 19 years to maturity and sell for 109 percent of par. The market risk premium is 7.3 percent, T-bills are yielding 3.3 percent, and the companys tax rate is 25 percent.
What is the firms market value capital structure?
Note: Do not round intermediate calculations and round your answers to 4 decimal places, e.g.,.1616.
If the company 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?
Note: Do not round intermediate calculations enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.

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