Can you check to see if the \"A\" part to this question is correct & help me wit

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Can you check to see if the "A" part to this question is correct & help me with B!

16) Hankins Corporation has 5.4 million shares of common stock outstanding, 290,000 shares of 5.6% preferred stock outstanding, and 125,000 of 6.7% semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $64 per share and has a beta of 1.13, the preferred stock currently sells for $103 per share, ad the bonds have 20 years to maturity and sell for 109% of par. The market risk premium of 6.8%, T-bills are yielding 4.3%, and the firm's tax rate is 34%.

Can you check to see if the "A" part to this question is correct & help me with B!

16) Hankins Corporation has 5.4 million shares of common stock outstanding, 290,000 shares of 5.6% preferred stock outstanding, and 125,000 of 6.7% semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $64 per share and has a beta of 1.13, the preferred stock currently sells for $103 per share, ad the bonds have 20 years to maturity and sell for 109% of par. The market risk premium of 6.8%, T-bills are yielding 4.3%, and the firm's tax rate is 34%.

A) What is the firm's market value capital structure? Market Value of Debt= Price of bond * # of bonds outstanding Price of Bond= $                               1,090 Market Value of Debt= $                  136,250,000 Market Value of Equity= $                  345,600,000 Market Value of Preferred Equity= $                    30,179,000 Total Capital Structure= $                  512,029,000 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?

Explanation / Answer

WACC = 9.45%

Amount weight cost weight*cost equity           345,600,000.00 0.6754 11.9840% 0.0809 debt           136,250,000.00 0.2663 3.9111% 0.0104 preferred shares             29,870,000.00 0.0584 5.4369% 0.0032

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