Titan Mining Corporation has 6.2 million shares of common stock outstanding, 215,000 shares of 3.5 percent outstanding, par value $1,000 each. The common stock currently sells for $74 per share and has a beta of 1.10, the preferred stock has a par value of $100 and currently sells for $82 per share, and the bonds have 16 years to maturity and sell for 106 percent of par. The market risk premium is 6.9 percent, T-bills are yielding 2.9 percent, and the company's tax rate is 22 percent.

a. What is the firm's market value capital structure?

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 should firm use to discount the project's cash flows?

a. debt

preferred stock

equity

b. discount rate