Question: ther are two part, please answer it all an clear the answer for me thank you Titan Mining Corporation has 9.2 million shares of common

 ther are two part, please answer it all an clear the

ther are two part, please answer it all an clear the answer for me thank you

Titan Mining Corporation has 9.2 million shares of common stock outstanding and 270,000 5.5 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $41 per share and has a beta of 1.20, and the bonds have 20 years to maturity and sell for 95 percent of par. The market risk premium is 5 percent, T-bills are yielding 3 percent, and Titan Mining's tax rate is 35 percent. a. What is the firm's market value capital structure? (Round the final answers to 4 decimal places.) Market value weight of debt Market value weight of 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. Round the final answer to 2 decimal places.) Weighted average cost of capital %

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!