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Lingenburger Cheese Corporation has 6.8 million shares of common stock outstanding, 245,000 shares of 4.1 percent preferred stock outstanding, par value of $100; and 130,000

image text in transcribed Lingenburger Cheese Corporation has 6.8 million shares of common stock outstanding, 245,000 shares of 4.1 percent preferred stock outstanding, par value of $100; and 130,000 bonds with a semiannual coupon rate of 5.8 percent outstanding, par value $1,000 each. The common stock currently sells for $68 per share and has a beta of 1.20 , the preferred stock has a par value of $100 and currently sells for $88 per share, and the bonds have 17 years to maturity and sell for 106 percent of par. The market risk premium is 7.6 percent, T-bills are yielding 3.6 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.g., 32.16. Answer is complete but not entirely correct

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