What is the firms market value capital structure

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Titan Mining Corporation has 9.3 million shares of common stock outstanding and 370,000 6 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $41 per share and has a beta of 1.15, and the bonds have 20 years to maturity and sell for 112 percent of par. The market risk premium is 8.1 percent, T-bills are yielding 4 percent, and Titan Mining’s tax rate is 40 percent

What is the firm's market value capital structure? (Do not round intermediate calculations and round your final answers to 4 decimal places. (e.g., 32.1616))

Weight

Debt        

Equity  

If Titan Mining 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 round your final answer to 2 decimal places. (e.g., 32.16))

Reference no: EM13850769

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