Organic Produce Corporation has nine million shares of common stock outstanding, 500,000 shares of 6 percent preferred stock outstanding, and 200,000 of 9.4 percent semiannual bonds outstanding, par value $ 1,000 each. The common stock currently sells for $64
per share and has a beta of 1.1, the preferred stock currently sells for $83 per share, and the bonds have 15 years to maturity and sell for 108 percent of par. The market risk premium is 8 percent, T-bills are yielding 5.5 percent, and the firm's tax rate is 34 percent.

A- What is the firm's market value capital structure?

B. If the firm 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?