LUIT.CUM PX?_=0.7752741808849154_1588968229651 16. value: 5.55 points 5.55 points Problem 14-16 Finding the WACC [LO3] Titan Mining Corporation has 9 million shares of common stock outstanding, 340,000 shares of 6 percent preferred stock outstanding, and 180,000 7.8 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $38 per share and has a beta of 1.50, the preferred stock currently sells for $88 per share, and the bonds have 20 years to maturity and sell for 119 percent of par. The market risk premium is 7.8 percent, T-bills are yielding 3 percent, and the company's tax rate is 36 percent. a. What is the firm's market value capital structure? (Do not round intermediate calculations. Round your answers to 4 decimal places, e.g., 32.1616.) Debt Preferred stock Equity Market value weight 0.3655 0.0510 0.5835 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., 32.16.) Discount rate References eBook & Resources Worksheet Difficulty Basic Problem 14-16 Finding the WACC [LO3] Learning Objective: 14-03 How to determine a firms overall cost of capital and how to use it to value a company Check my work