Question 3 Titan Mining Corp has 8.5 million shares of common stock outstanding and 200,000 long term bonds outstanding with 8% coupon, par value $1,000 each. The common stock currently trading at $34 per share and has a beta of 1.2, and the bond is now trading at par value. The market risk premium is 7%, risk-free rate of interest is 5%, and Titan Mining's tax rate is 35%. a. What is the required rate of return of Titan's share? (6 marks) b. What is the Titan's before tax cost of debt? (3 marks) c. What is the WACC of the Titan? (10 marks) d. If Titan Mining is evaluating a new investment project that has a higher risk than the firm's typical project, what rate should the firm use to discount the project's cash flow? Please explain without any calculations. (6 marks)