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Lingenburger Cheese Corporation has 7.3 million shares of common stock outstanding, 265,000 shares of 4.5 percent preferred stock outstanding. par value of $100; and 150,000

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Lingenburger Cheese Corporation has 7.3 million shares of common stock outstanding, 265,000 shares of 4.5 percent preferred stock outstanding. par value of $100; and 150,000 bonds with a semiannual coupon rate of 5.4 percent outstanding, par value $2,000 each. The common stock currently sells for $64 per share and has a bets of 1.20 , the preforfed stock has a par value of $100 and curtently sells for $92 per share, and the bonds have 16 years to maturity and sell for 106 percent of par. The market risk premlum is 7.4 percent. T-bills are yielding 3.2 percent, and the company's tax rate is 22 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.9., 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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