Titan Mining Corporation has 7.6 million shares of common stock outstanding, 280,000 shares of 4.5 percent...

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Titan Mining Corporation has 7.6 million shares of common stockoutstanding, 280,000 shares of 4.5 percent preferred stockoutstanding, and 165,000 bonds with a semiannual coupon rate of 5.9percent outstanding, par value $2,000 each. The common stockcurrently sells for $61 per share and has a beta of 1.15, thepreferred stock has a par value of $100 and currently sells for $95per share, and the bonds have 19 years to maturity and sell for 109percent of par. The market risk premium is 7.1 percent, T-bills areyielding 3.5 percent, and the company’s tax rate is 25 percent.
a. What is the firm’s market value capital structure? (Do notround intermediate calculations and round your answers to 4 decimalplaces, e.g., .1616.)
b. If the company is evaluating a new investment project thathas the same risk as the firm’s typical project, what rate shouldthe firm use to discount the project’s cash flows? (Do not roundintermediate calculations enter your answer as a percent rounded to2 decimal places, e.g., 32.16.)

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Titan Mining Corporation has 7.6 million shares of common stockoutstanding, 280,000 shares of 4.5 percent preferred stockoutstanding, and 165,000 bonds with a semiannual coupon rate of 5.9percent outstanding, par value $2,000 each. The common stockcurrently sells for $61 per share and has a beta of 1.15, thepreferred stock has a par value of $100 and currently sells for $95per share, and the bonds have 19 years to maturity and sell for 109percent of par. The market risk premium is 7.1 percent, T-bills areyielding 3.5 percent, and the company’s tax rate is 25 percent.a. What is the firm’s market value capital structure? (Do notround intermediate calculations and round your answers to 4 decimalplaces, e.g., .1616.)b. If the company is evaluating a new investment project thathas the same risk as the firm’s typical project, what rate shouldthe firm use to discount the project’s cash flows? (Do not roundintermediate calculations enter your answer as a percent rounded to2 decimal places, e.g., 32.16.)