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 companys tax rate is 23 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.

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 companys tax rate is 23 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.

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 companys tax rate is 23 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.

Debt:

preferred stock:

equity:

discount rate: