Question: Please double check my answer and show work. (Please make sure to follow the rounding instructions exactly, or the answer will be incorrect) Thank you!!

Please double check my answer and show work. (Please make sure to follow the rounding instructions exactly, or the answer will be incorrect) Thank you!!

Please double check my answer and show work. (Please make sure to

Question 1 5 pts Tarrasa Mining Corporation has 9.3 million shares of common stock outstanding and 215,000 6.1% semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $23 per share and has a beta of 0.6. The bonds have 25 years to maturity and sell for 98% of par. The market risk premium is 6.2%, T-bills are yielding 5.5%, and Tarrasa Mining's tax rate is 38%. What is the firm's market value weight of equity? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations). 50.38. What is the firm's market value weight of debt? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations). 49.62 What is the firm's cost of equity? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations). 9.22 What is the firm's cost of debt? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations). 3.87 If Tarrasa 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? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations. When using previous answers, use the rounded answer as it was given in the answer box.) 6.57 Topic: WACC

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