P13-14. Finding the Weighted Average Cost of Capital Titan Mining Corporation has 10.4 million shares of common stock outstanding and 390,000 7.5 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $53 per share and has a beta of 1.20, and the bonds have 20 years to maturity and sell for 95 percent of par. The market risk premium is 7 percent, T-bills are yielding 5 percent, and Titan Mining's tax rate is 35 percent. a. What is the firm's market value capital structure? (Round the final answers to 4 decimal places.) 0.5980 Market value weight of debt Market value weight of equity 0.4019 b. If Titan Mining 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. Round the final answer to 2 decimal places.) Weighted average cost of capital 13.4 %