Titan Mining Corporation has 9.8 million shares of common stock outstanding and $420,000 5.2% semiannual bonds outstanding, par value $1000 each. The common stock currently sells for $46 per share and has a beta of 1.3; the bonds have 15 years to maturity and sell for 117 percent of par. The market risk premium is 8.6%, T-bills are yielding 4%, and the company's tax rate is 23%.

a. What is the firm's market value capital structure (debt and 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?