Titan Mining Corporation has 8.6million shares of common stock outstanding and 300,000 5.4 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $34 per share and has a beta of 1.3; the bonds have 15 years to maturity and sell for 115 percent of par. The market risk premium is 7.4 percent, T-bills are yielding 3 percent, and the company's tax rate is 21 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 to the firm's typical project, what rate should the firm use to discount the project's cash flows?

a. Debt
Equity
b. Discount rate			%

*** Please show calculations, No recycled answers, round answers to 4 decimal places.