Hankins Corporation has 6.5 million shares of common stock outstanding, 322,000 shares of 4.7 percent...

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Hankins Corporation has 6.5 million shares of common stock outstanding, 322,000 shares of 4.7 percent preferred stock outstanding, par value of $100, and 75,000 5.5 percent semiannual bonds outstanding, par value $2,000 each. The common stock currently sells for $74.40 per share and has a beta of 1.13, the preferred stock currently sells for $101.80 per share, and the bonds have 24 years to maturity and sell for 96.3 percent of par. The market risk premium is 6.9 percent, T-bills are yielding 3.5 percent, and the firm's tax rate is 21 percent. What is the firm's market value capital structure? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 1616.) 0.2186 Market value weight of debt Market value weight of preferred stock Market value weight of equity 0.0496 0.7318 What is the firm's cost of each form of financing? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Aftertax cost of debt 4.57 % 4.62% Cost of preferred stock Cost of equity 11.30% If the firm 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.) Weighted average cost of capital %

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