Question
Titan Mining Corporation has 14 million shares of common stock outstanding, 738,000 shares of 6.5 percent preferred stock outstanding, and 180,000 7.5 percent semiannual bonds
Titan Mining Corporation has 14 million shares of common stock outstanding, 738,000 shares of 6.5 percent preferred stock outstanding, and 180,000 7.5 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $33 per share and has a beta of 1.1, the preferred stock currently sells for $80 per share, and the bonds have 13 years to maturity and sell for 95 percent of par. The market risk premium is 9 percent, T-bills are yielding 4.5 percent, and Titan Mining's tax rate is 33 percent. The Market Value Weightd of Debt and Equity are________ and ________, respectively. The WACC is 11.65%
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