Problem $14-16$ Finding the WACC $[$LO$3]$

Lingenburger Cheese Corporation has $6\mathrm{.}3$ million shares of common stock outstanding,

$220,000$ shares of $3\mathrm{.}6$ percent preferred stock outstanding, and $105,000$ bonds with a

semiannual coupon rate of $5\mathrm{.}3$ percent outstanding, par value $$1,000$ each. The common

stock currently sells for $$73$ per share and has a beta of $1\mathrm{.}15,$ the preferred stock has a

par value of $$100$ and currently sells for $$83$ per share, and the bonds have $17$ years to

maturity and sell for $107$ percent of par. The market risk premium is $7\mathrm{.}1$ percent, T$-$bills are

yielding $3\mathrm{.}1$ percent, and the company's tax rate is $23$ percent.

a$.$ What is the firm's market value capital structure? $($Do not round intermediate

calculations and round your answers to $4$ decimal places, e$.$g$.,\mathrm{.}1616.)$

b$.$ If the company 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 enter your answer as a percent

rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$