Titan Mining Corporation has 9.7 million shares of common stock outstanding, 410,000 shares of 4 percent preferred stock outstanding, and 215,000 8.5 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $45 per share and has a beta of 1.35, the preferred stock currently sells for $95 per share, and the bonds have 10 years to maturity and sell for 116 percent of par. The market risk premium is 8.5 percent, T-bills are yielding 5 percent, and Titan Minings tax rate is 35 percent.

a.	What is the firms market value capital structure? (Round your answers to 4 decimal places. (e.g., 32.1616))

	Market value
Debt
Preferred stock
Equity

b.	If Titan Mining is evaluating a new investment project that has the same risk as the firms typical project, what rate should the firm use to discount the projects cash flows? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Discount rate

%