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Lingenburger Cheese Corporation has 6.2 milion shares of common stock outstanding, 215,000 shares of 3.5 percent preferred stock outstanding. par value of $100; and 100,000

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Lingenburger Cheese Corporation has 6.2 milion shares of common stock outstanding, 215,000 shares of 3.5 percent preferred stock outstanding. par value of $100; and 100,000 bonds with a semiannual coupon rate of 5.2 percent outstanding. par value $1,000 each. The common stock currently sells for $74 per share and has a beta of 1.10 , the preferred stock has a par value of $100 and currently sells for $82 per share, and the bonds have 16 years to maturity and sell for 106 percent of par. The market risk premium is 6.9 percent, T-bilis are ylelding 2.9 percent, and the company's tax rate is 22 percent. a. What is the firm's market value capltal structure? Note: 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? Note: Do not round intermediate calculations enter your answer as a percent rounded to 2 decimal places, e,9., 32,16

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