Titan mining corporation has 9.8 million shares of common stock outstanding and 420,000 5 percent semiannual bonds outstanding, par value $1,000 each. the common stock currently sells for $46 per share and has a beta of 1.4, 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.

a. what is the firm's market value capital structure? (do not round intermediate calculations and round your answers to 4 decimal places, e. g., 32.1616.)

weight

debt

equity

b. 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? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

discount rate %

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u.s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.