What is the firm market value weight of equity

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Tarrasa Mining Corporation has 9.3 million shares of common stock outstanding and 215,000 6.1% semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $23 per share and has a beta of 0.6. The bonds have 25 years to maturity and sell for 98% of par. The market risk premium is 6.2%, T-bills are yielding 5.5%, and Tarrasa Mining's tax rate is 38%.

What is the firm's market value weight of equity?

What is the firm's market value weight of debt?

What is the firm's cost of equity?

What is the firm's cost of debt?

If Tarrasa 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?

Reference no: EM132679108

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