Lingenburger Cheese Corporation has 6.4 million shares of common stock outstanding, 200,000 shares of 3.8 percent preferred stock outstanding, par value of $100, and 120,000 bonds with a semiannual coupon of 4.8 percent outstanding, par value $1,000 each. The common stock currently sells for $54 per share and has a beta of 1.08, the preferred stock currently sells for $103 per share, and the bonds have 15 years to maturity and sell for 107 percent of par. The market risk premium is 7.5 percent, T-bills are yielding 2.4 percent, and the company's tax rate is 22 percent. 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 and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is not complete. a. Debt 0.2599 a. Equity a. Preferred stock b. Discount rate 8.38% Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Coupon Rate Price Quote Bond Maturity 1 4.00% 103.18 Face Value $ 45,000,000 40,000,000 50,000,000 65,000,000 2 3 4 6.10 5.30 4.90 5 years 8 years 15.5 years 25 years 112.80 107.45 102.75 If the corporate tax rate is 22 percent, what the aftertax cost of the company's (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of debt %