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Business, 27.05.2020 18:02 oranzajimenez

Titan Mining Corporation has 14 million shares of common stock outstanding, 900,000 shares preferred stock outstanding paying $9 dividend per share, and 220,000 semiannual coupon bonds outstanding with 10% coupon rate and a par value of $1,000 each. The common stock currently sells for $42 per share and has a beta of 1.15, the preferred stock currently sells for $80 per share, and the bonds have 17 years to maturity and sell for 91 percent of par. The market risk premium is 11.5 percent, risk-free rate is 7.5 percent, and the firm's tax rate is 32 percent. What discount rate should the firm apply to a new project's cash flows if the project has the same risk as the firm's typical project

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Titan Mining Corporation has 14 million shares of common stock outstanding, 900,000 shares preferred...
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