. Titan Mining Corporation has 9 million shares of common stock outstanding and 200,000 bonds outstanding with 8 percent coupon rate, semiannual payments and par value $1,000 each. The common stock currently sells for $30 per share and has a beta of 1.20, and the bonds have 20 years to maturity and sell for 115 percent of par. The market risk premium is 6 percent, T-bills are 2 percent, and the companys tax rate is 20 percent. If the company is evaluating a new investment project that has higher risk (beta of the project is 1.5) than the firms typical project, what rate should the firm use to discount the projects cash flows?