Business, 30.10.2019 22:31, syed13

Titan mining corporation has 9.8 million shares of common stock outstanding and 420,000 5 percent semiannual bonds outstanding, par value $1,000 each. the common stock currently sells for $46 per share and has a beta of 1.4, and the bonds have 15 years to maturity and sell for 117 percent of par. the market risk premium is 8.6 percent, t-bills are yielding 4 percent, and the company’s tax rate is 40 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., 32.1616.)

weight

debt

equity

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 and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

discount rate %

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 23:30, shannydouglas

Which type of market are you in if your company, along with three other companies, controls 95 percent of the total music industry?

Answers: 3

continue

Business, 22.06.2019 13:30, lemmeboiz43

The fiscal 2016 financial statements of nike inc. shows average net operating assets (noa) of $8,450 million, average net nonoperating obligations (nno) of $(4,033) million, average total liabilities of $9,014 million, and average equity of $12,483 million. the company's 2016 financial leverage (flev) is: select one: a. (0.477) b. (0.559 c. (0.323) d. (0.447) e. there is not enough information to determine the ratio.

Answers: 2

continue

Business, 23.06.2019 02:30, d1Dej

Markets and competition in a perfectly competitive market, all producers sell identical goods or services. additionally, there are many buyers and sellers. because of these two characteristics, both buyers and sellers in perfectly competitive markets are pricetakers . true or false: the market for lettuce does exhibit the two primary characteristics that define perfectly competitive markets. true false

Answers: 2

continue

Business, 23.06.2019 07:50, sarahlearn3

Tubby toys estimates that its new line of rubber ducks will generate sales of $7.60 million, operating costs of $4.60 million, and a depreciation expense of $1.60 million. if the tax rate is 35%, what is the firm’s operating cash flow? (enter your answer in millions rounded to 2 decimal places.)

Answers: 1

continue

Do you know the correct answer?

Titan mining corporation has 9.8 million shares of common stock outstanding and 420,000 5 percent se...