Lingenburger Cheese Corporation has $7\mathrm{.}4$ million shares of common stock outstanding, $270,000$ shares of $4\mathrm{.}6$ percent preferred stock outstanding, and $155,000$ bonds with a semiannual coupon rate of $5\mathrm{.}5$ percent outstanding, par value $$2,000$ each. The common stock currently sells for $$63$ per share and has a beta of $1\mathrm{.}05,$ the preferred stock has a par value of $$100$ and currently sells for $$93$ per share, and the bonds have $17$ years to maturity and sell for $107$ percent of par. The market risk premium is $7\mathrm{.}3$ percent, T$-$bills are yielding $3\mathrm{.}3$ percent, and the company$$s tax rate is $23$ 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$.,\mathrm{.}1616.)$

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 enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$Lingenburger Cheese Corporation has $7\mathrm{.}4$ million shares of common stock outstanding, $270,000$ shares of $4\mathrm{.}6$ percent preferred stock outstanding, and $155,000$ bonds with a semiannual coupon rate of $5\mathrm{.}5$ percent outstanding, par value $$2,000$ each. The common stock currently sells for $$63$ per share and has a beta of $1\mathrm{.}05,$ the preferred stock has a par value of $$100$ and currently sells for $$93$ per share, and the bonds have $17$ years to maturity and sell for $107$ percent of par. The market risk premium is $7\mathrm{.}3$ percent, T$-$bills are yielding $3\mathrm{.}3$ percent, and the company$$s tax rate is $23$ 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$.,\mathrm{.}1616.)$

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 enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$Lingenburger Cheese Corporation has $7\mathrm{.}4$ million shares of common stock outstanding, $270,000$ shares of $4\mathrm{.}6$ percent preferred stock outstanding, and $155,000$ bonds with a semiannual coupon rate of $5\mathrm{.}5$ percent outstanding, par value $$2,000$ each. The common stock currently sells for $$63$ per share and has a beta of $1\mathrm{.}05,$ the preferred stock has a par value of $$100$ and currently sells for $$93$ per share, and the bonds have $17$ years to maturity and sell for $107$ percent of par. The market risk premium is $7\mathrm{.}3$ percent, T$-$bills are yielding $3\mathrm{.}3$ percent, and the company$$s tax rate is $23$ 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$.,\mathrm{.}1616.)$

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 enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$ Lingenburger Cheese Corporation has $7\mathrm{.}4$ million shares of common stock outstanding.

$270,000$ shares of $4\mathrm{.}6$ percent preferred stock outstanding. and $155,000$ bonds with a

semiannual coupon rate of $5\mathrm{.}5$ percent outstanding. par value $$2,000$ each. The

common stock currently sells for $$63$ per share and has a beta of $1\mathrm{.}05,$ the preferred

stock has a par value of $$100$ and currently sells for $$93$ per share, and the bonds have

$17$ years to maturity and sell for $107$ percent of par. The market risk premium is $7\mathrm{.}3$

percent, T$-$bills are yielding $3\mathrm{.}3$ percent, and the company's tax rate is $23$ percent.

a$.$ What is the firm's market value capital structure? $($Do not round Intermedlate

calculations and round your answers to $4$ decimal places, e$.$g$.,\mathrm{.}1616.)$

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 Intermedlate calculations enter your answer as a percent

rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$