points awarded

Titan Mining Corporation has $6\mathrm{.}6$ million shares of common stock outstanding, $235,000$

shares of $3\mathrm{.}9$ percent preferred stock outstanding, and $120,000$ bonds with a semiannual

coupon rate of $5\mathrm{.}6$ percent outstanding, par value $$1,000$ each. The common stock

currently sells for $$70$ per share and has a beta of $1\mathrm{.}10,$ the preferred stock has a par

value of $$100$ and currently sells for $$86$ per share, and the bonds have $15$ years to

maturity and sell for $104$ percent of par. The market risk premium is $7\mathrm{.}4$ percent, T$-$bills

are yielding $3\mathrm{.}4$ percent, and the company's tax rate is $21$ 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$.,32\mathrm{.}16.)$