itan Mining Corporation has 7.9 million shares of common stock outstanding, 295,000 shares of 4.2 percent...

itan Mining Corporation has 7.9 million shares of common stock outstanding, 295,000 shares of 4.2 percent preferred stock outstanding, and 180,000 bonds with a semiannual coupon rate of 5.7 percent outstanding, par value $2,000 each. The common stock currently sells for $58 per share and has a beta of 1.10, the preferred stock has a par value of $100 and currently sells for $98 per share, and the bonds have 17 years to maturity and sell for 106 percent of par. The market risk premium is 6.7 percent, T-bills are yielding 3.4 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., .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., 32.16.)

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jeff jeffy answered 2 years ago

Titan Mining Corporation has 7.5 million shares of common stock outstanding, 250,000 shares of 4.2 percent...

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 $1000 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 sells for 107 percent of par. The market risk premium is 7.5 percent,...

Hankins Corporation has 5.5 million shares of common stock outstanding, 302,000 shares of 4.2 percent preferred...

Hankins Corporation has 5.5 million shares of common stock outstanding, 302,000 shares of 4.2 percent preferred stock outstanding, par value of $100, and 155,000 5.5 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $72.90 per share and has a beta of 1.11, the preferred stock currently sells for $104.20 per share, and the bonds have 20 years to maturity and sell for 103.6 percent of par. The market risk premium is 6.7 percent, T-bills...

Titan Mining Corporation has 6.2 million shares of common stock outstanding, 215,000 shares of 3.5 percent...

Titan Mining Corporation has 6.2 million shares of common stock outstanding, 215,000 shares of 3.5 percent preferred stock outstanding, and 100,000 bonds with a semiannual coupon rate of 5.2 percent outstanding, par value $1,000 each. The common stock currently sells for $74 per share and has a beta of 1.10, the preferred stock has a par value of $100 and currently sells for $82 per share, and the bonds have 16 years to maturity and sell for 106 percent of...

titan mining corporation has 14 million shares of common stock outstanding 900,000 shares of 9 percent...

titan mining corporation has 14 million shares of common stock outstanding 900,000 shares of 9 percent preferred stock outstanding and 210,000 ten percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $34 per share and has a beta of 1.15, the preferred stock currently sell 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, T-bills are yielding 7.5...

Titan Mining Corporation has 9.9 million shares of common stock outstanding, 430,000 shares of 6 percent...

Titan Mining Corporation has 9.9 million shares of common stock outstanding, 430,000 shares of 6 percent preferred stock outstanding, and 225,000 8.7 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $47 per share and has a beta of 1.45, the preferred stock currently sells for $97 per share, and the bonds have 20 years to maturity and sell for 118 percent of par. The market risk premium is 8.7 percent, T-bills are yielding 5...

Titan Mining Corporation has 7.3 million shares of common stock outstanding, 265,000 shares of 4.5 percent...

Titan Mining Corporation has 7.3 million shares of common stock outstanding, 265,000 shares of 4.5 percent preferred stock outstanding, and 150,000 bonds with a coupon rate of 5.4 percent outstanding, par value $1,000 each. The common stock currently sells for $64 per share and has a beta of 1.20. The preferred stock has a par value of $100 and currently sells for $92 per share. The bonds have 16 years to maturity, pay semiannual coupons, and sell for 106 percent...

Titan Mining Corporation has 7.8 million shares of common stock outstanding, 290,000 shares of 4.3 percent...

Titan Mining Corporation has 7.8 million shares of common stock outstanding, 290,000 shares of 4.3 percent preferred stock outstanding, and 175,000 bonds with a semiannual coupon rate of 5.9 percent outstanding, par value $2,000 each. The common stock currently sells for $59 per share and has a beta of 1.05, the preferred stock has a par value of $100 and currently sells for $97 per share, and the bonds have 16 years to maturity and sell for 103 percent of...

Titan Mining Corporation has 9.5 million shares of common stock outstanding, 390,000 shares of 5 percent...

Titan Mining Corporation has 9.5 million shares of common stock outstanding, 390,000 shares of 5 percent preferred stock outstanding, and 205,000 8.3 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $43 per share and has a beta of 1.25, the preferred stock currently sells for $93 per share, and the bonds have 15 years to maturity and sell for 114 percent of par. The market risk premium is 8.3 percent, T-bills are yielding 4...

Titan Mining Corporation has 9 million shares of common stock outstanding, 340,000 shares of 6 percent...

Titan Mining Corporation has 9 million shares of common stock outstanding, 340,000 shares of 6 percent preferred stock outstanding, and 180,000 7.8 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $38 per share and has a beta of 1.50, the preferred stock currently sells for $88 per share, and the bonds have 20 years to maturity and sell for 119 percent of par. The market risk premium is 7.8 percent, T-bills are yielding 3...

Titan Mining Corporation has 8.8 million shares of common stock outstanding, 320,000 shares of 4 percent...

Titan Mining Corporation has 8.8 million shares of common stock outstanding, 320,000 shares of 4 percent preferred stock outstanding, and 170,000 7.6 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $36 per share and has a beta of 1.40, the preferred stock currently sells for $86 per share, and the bonds have 10 years to maturity and sell for 117 percent of par. The market risk premium is 7.6 percent, T-bills are yielding 5...

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