What is the firms market value capitol structure

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Makai Metal Corp has 9 Million shares of common stock outstanding and 340,000 6% semi-annual bonds outstanding, par value 1,000 each. Common stock currently sells for $38 per share and has a beta of 1.5, and the bonds have 20 years to maturity and sell for 119% of par. The market risk premium is 7.8% T-Bills are yielding 3%, and the companies tax rate is 36%

A. What is the firms market value capitol structure?

Debt Market Value Weight?

Equity Market Value Weight?

B. If the company is evaluating a new investment project that has the same risks as the firms typical projects, what rate should the firm use to discount the projects cash flows?

Discount rate=?

Reference no: EM131893218

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