Titan Mining Corporation has 8 . 5 million shares of common stock outstanding and 2 5 0
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Question:
Titan Mining Corporation has million shares of common stock outstanding and percent semiannual bonds outstanding, par value $ each. The common stock currently sells for $ per share and has a beta of and the bonds have years to maturity and sell for percent of par. The market risk premium is percent, Tbills are yielding percent, and Titan Minings tax rate is percent.
a
What is the firm's market value capital structure? Do not round intermediate calculations and round your final answers to decimal places. eg
Weight
Debt
Equity
b
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 decimal places. eg
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