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Business, 26.11.2019 06:31 jadielmatmat

Titan mining corporation has 7.5 million shares of common stock outstanding, 250,000 shares of 4.2 percent preferred stock outstanding, and 140,000 bonds with a semiannual coupon of 5.1 percent outstanding, par value $1,000 each. the common stock currently sells for $51 per share and has a beta of 1.15, the preferred stock currently sells for $103 per share, and the bonds have 15 years to maturity and sell for 107 percent of par. the market risk premium is 7.5 percent, t-bills are yielding 2.4 percent, and the company’s tax rate is 22 percent. what is the firm’s market value capital structure? 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?

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Titan mining corporation has 7.5 million shares of common stock outstanding, 250,000 shares of 4.2 p...
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