Titan Mining Corporation has 7.5 million shares of common stock outstanding, 250,000 shares of 4.2...
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Titan Mining Corporation has million shares of common stock outstanding, shares of percent preferred stock outstanding, and bonds with a semiannual coupon of percent outstanding, par value $ each. The common stock currently sells for $ per share and has a beta of the preferred stock has a par value of $ and currently sells for $ per share, and the bonds have years to maturity and sell for percent of par. The market risk premium is percent, Tbills are yielding percent, and the companys tax rate is percent. a What is the firms market value capital structure? Do not round intermediate calculations and round your answers to decimal places, eg b If the company 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 enter your answer as a percent rounded to decimal places, eg PLS SOLVE IN EXCEL STEP BY STEP
Titan Mining Corporation has million shares of common stock outstanding, shares of percent preferred stock outstanding, and bonds with a semiannual coupon of percent outstanding, par value $ each. The common stock currently sells for $ per share and has a beta of the preferred stock has a par value of $ and currently sells for $ per share, and the bonds have years to maturity and sell for percent of par. The market risk premium is percent, Tbills are yielding percent, and the companys tax rate is percent.
a
What is the firms market value capital structure? Do not round intermediate calculations and round your answers to decimal places, eg
b If the company 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 enter your answer as a percent rounded to decimal places, eg PLS SOLVE IN EXCEL STEP BY STEP
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