Titan Mining Corporation has 7.5 million shares of common stock outstanding, and 140,000 bonds with a semiannual coupon of 5.1% outstanding, par value $1,000 each. The common stock currently sells for $51 per share and has a beta of 1.15, and the bonds have 15 years to maturity and sell for 107% of par. The market risk premium is 7.5%, T-bills are yielding 2.4%, and the company’s tax rate is 22%. What is the capital structure of debt?
Titan Mining Corporation has 7.5 million shares of common stock outstanding, and 140,000 bonds with a semiannual coupon of 5.1% outstanding, par value $1,000 each. The common stock currently sells for $51 per share and has a beta of 1.15, and the bonds have 15 years to maturity and sell for 107% of par. The market risk premium is 7.5%, T-bills are yielding 2.4%, and the company’s tax rate is 22%. What is the capital structure of equity?