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Titan Mining Corporation has 9.8 million shares of common stock outstanding, 420,000 shares of 5 percent preferred stock outstanding, and 220,000 8.6 percent semiannual bonds outstanding, par value $1,000 each.

The common stock currently sells for $46 per share and has a beta of 1.40, the preferred stock currently sells for $96 per share, 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.

What is the firm's market value capital structure? (Do not round intermediate calculations. Round your answers to 4 decimal places, e.g., 32.1616.)

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92866910

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