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Titan Mining Corporation has 7 . 5 million shares of common stock outstanding, and 1 4 0 , 0 0 0 bonds with a semiannual

Titan Mining Corporation has 7.5 million shares of common stock outstanding, and 140,000 bonds with a semiannual coupon of 5% outstanding, par value $1,000 each. The common stock currently sells for $50 per share and has a beta of 1.5, and the bonds have 25 years to maturity and sell for 105% of par. The market risk premium is 7.5%, T-bills are yielding 2.4%, and the companys tax rate is 22%. What is the firms market value capital structure for equity and debt?
0.2816 and 0.7184
0.2356 and 0.7644
0.2814 and 0.7186
0.7184 and 0.2816
0.7644 and 0.2356

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