Lingenburger Cheese Corporation has 5.3 million shares of common stock outstanding, 298,000 shares of 5.3 percent preferred stock outstanding, par value of $100, and 145,000 5.7 percent semiannual bonds outstanding, par value $1,000 each. What is the firm's market value capital structure?
a. Debt
b. Equity
c. Preferred stock
Lingenburger Cheese Corporation has 5.3 million shares of common stock outstanding, 298,000 shares of 5.3 percent preferred stock outstanding, par value of $100, and 145,000 5.7 percent semiannual bonds outstanding, par value $1,000 each. If the company 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?
a. 6.5%
b. 9.6%
c. 10.2%
d. 11.3%
