Titan Mining Corporation has 8.5 million shares of common stock outstanding and 200,000 7.5 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $34 per share and has a beta of 1.20, and the bonds have 15 years to maturity and sell for 93 percent of par. The market risk premium is 7 percent, T-bills are yielding 5 percent, and Titan Mining;s tax rate is 35 percent.

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

b. If Titan Mining is evaluating a new investment project that has the same risk as the firm's typical project, what rate should the firm use to discount the project;s cash flows?