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Lingenburger Cheese Corporation has 6.3 million shares of common stock outstanding. 220,000 shares of 3.6 percent preferred stock outstanding, par value of $100; and 105,000

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Lingenburger Cheese Corporation has 6.3 million shares of common stock outstanding. 220,000 shares of 3.6 percent preferred stock outstanding, par value of $100; and 105,000 bonds with a semiannual coupon rate of 5.3 percent outstanding. par vaiue $1,000 each. The common stock currently sells for $73 per share and has a beta of 1.15, the preferred stock has a par value of $100 and currently sells for $83 per share, and the bonds have 17 years to maturity and sell for 107 percent of par. The market risk premium is 7.1 percent, T-bilis are yielding 3.1 percent, and the company's tax rate is 23 percent. a. What is the firm's market value capital 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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