{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-10T01:31:28-04:00", "answer_date": "2024-06-10 01:31:28", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2551771", "url": "\/study-help\/questions\/titan-mining-corporation-has-96-million-shares-of-common-stock-2551771", "question_creation_date_js": "2024-06-10T01:31:28-04:00", "question_creation_date": "Jun 10, 2024 01:31 AM", "meta_title": "[Solved] Titan Mining Corporation has 9.6 million | SolutionInn", "meta_description": "Answer of - Titan Mining Corporation has 9.6 million shares of common stock outstanding and 400,000 6 percent semiannual bonds out | SolutionInn", "meta_keywords": "titan,mining,corporation,9.6,million,shares,common,stock,outstanding,400,000,6,percent", "question_title_h1": "Titan Mining Corporation has 9.6 million shares of common stock outstanding and 400,000 6 percent semiannual bonds outstanding, par value $1,000 each. The common stock", "question_title": "Titan Mining Corporation has 9.6 million shares of common stock outstanding and", "question_title_for_js_snippet": "Titan Mining Corporation has 9 6 million shares of common stock outstanding and 400,000 6 percent semiannual bonds outstanding, par value $1,000 each The common stock currently sells for $44 per share and has a beta of 1 3, and the bonds have 20 years to maturity and sell for 115 percent of par The market risk premium is 8 4 percent, T bills are yielding 4 percent, and the companys tax rate is 40 percent a What is the firm's market value capital structure (Do not round intermediate calculations and round your answers to 4 decimal places, e g , 32 1616 ) Weight Debt Equity 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 firm use to discount the project's cash flows (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e g , 32 16 ) Discount rate", "question_description": "

<\/p>

Titan Mining Corporation has 9.6 million shares of common stock outstanding and 400,000 6 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $44 per share and has a beta of 1.3, and the bonds have 20 years to maturity and sell for 115 percent of par. The market risk premium is 8.4 percent, T-bills are yielding 4 percent, and the companys tax rate is 40 percent.<\/p> <\/td><\/tr><\/tbody><\/table>

<\/p>
a.<\/td>

What is the firm's market value capital structure?(Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)<\/p> <\/td> <\/tr><\/tbody><\/table>

<\/p>
<\/td> Weight<\/td> <\/tr>
Debt<\/td> <\/td> <\/tr>
Equity<\/td> <\/td> <\/tr> <\/tbody><\/table>

<\/p>
b.<\/td>

If the company 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?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)<\/p> <\/td> <\/tr><\/tbody><\/table>

<\/p>

Discount rate<\/p><\/td><\/tr><\/tbody><\/table>", "transcribed_text": "", "related_book": { "title": "The Changing Geography Of Banking And Finance", "isbn": "1441947205, 978-1441947208", "edition": "1st Edition", "authors": "Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/2024\/03\/66050c9f889e3_94366050c9f62f22.jpg", "uri": "\/textbooks\/the-changing-geography-of-banking-and-finance-1st-edition-978-1441947208-260622", "see_more_uri": "" }, "free_related_book": { "isbn": "1447154657", "uri": "\/textbooks\/calculus-for-computer-graphics-1st-edition-978-1447154655-140911", "name": "Calculus For Computer Graphics", "edition": "1st Edition" }, "question_posted": "2024-06-10 01:31:28", "see_more_questions_link": "\/study-help\/questions\/business-management-leadership-2023-June-05", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/show-the-resultant-of-the-hydrostatic-forces-acting-on-35562", "description": "Show that the resultant of the hydrostatic forces acting on a submerged plane area A is a force P perpendicular to the area and of magnitude P = Ay sin = pA , where is the specific weight of the...", "stars": 3 }, { "url": "\/why-did-daimler-feel-the-need-to-make-bribe-payments", "description": "Why did Daimler feel the need to make bribe payments? 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