Titn Mining Corporation has 7.2 million shares of common stock outstanding, 260,000 shares of 4.4 percent preferred stock outstanding and 145,000 bonds with a semiannual coupon rate of 5.5 percent outstanding, par value $2,000 each.

Problem 14-16 Finding the WACC ILO3J Titan Mining Corporation has 72 milion shares of common stock outstanding, 260,000 shares of 4.4 percent preferred stock outstanding, and 145,000 bonds with a semiannual coupon rate of 55 percent outstanding, par value $2,000 each. The common stock currently sells for $65 per share and has a beta of 115, the preferred stock has a par value of $100 and currently sells for $91 per share, and the bonds have 15 years to maturity and sell for 105 percent of par. The market risk premium is 75 percent, T-bills are yilelding 31 percent, and the company's tax rate is 21 percent a. What is the firm's market value capital structure? In other words, what are the market value percentage weights for debt, preferred stock, and equity? (Do not round intermediate colculations and round your answers to 4 decimal places, e.g. .1616.) 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 rounded to 2 decimal places, e.g. 3216.) not round intermediate calculations enter your answer as a percent a. [Debt Preforred stock Equity b. Discount rate Pre 8 of 8 Next 0 5 6 7 0