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Titan Corporation has 8 . 5 million shares of common stock outstanding and 2 9 0 , 0 0 0 4 . 7 percent semiannual

Titan Corporation has 8.5 million shares of common stock outstanding and 290,0004.7 percent semiannual bonds outstanding, with a par value of $1,000 each. The common stock currently sells for $33 per share and has a beta of 1.25 ; the bonds have 10 years to maturity and sell for 114 percent of par. The market risk premium is 7,3 percent, T-bilis are yleiding 6 percent, and the company's tax rate is 25 percent.
a. What is the firm's market value capita! structure? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g.,1616.)
b. If the company is evaluating a new imvestment project that has the same risk as the firm's typical project, what rate should the firm use to discount the project's cash flaws? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.)
\table[[a. Debt,,],[a. Equity,,],[b. Discount rate,,]]

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