premium is 8.3 percent, T-bills are yielding 4 percent, and the company’ s tax rate is 36 percent. a. What is the firm ' s market value capital structure? 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? 33. Filer Manufacturing has 8.9 million shares of common stock outstanding. The current share price is $ 59, and the book value per share is $ 4. The company also has two bond issues outstanding. The first bond issue has a face value of $ 71.2 million and a coupon rate of 7.6 percent and sells for 107.7 percent of par. The second issue has a face value of $ 61.2 million and a coupon rate of 8.1 percent and sells for 110.1 percent of par. The first issue matures in 8 years, the second in 27 years. Suppose the company’ s stock has a beta of 1.2. The risk-free rate is 3.7 percent, and the market risk premium is 7.6 percent. 34. When estimating the cost of equity using the DDM, which one of these is most apt to add error to this estimate? 35. When computing WACC, you should use the: 36. The cost of preferred stock: 37. No matter how many forms of investment analysis you employ: 38. Which statement concerning the net present value( NPV) of an investment or a financing project is correct? 39. The net present value method of capital budgeting analysis does all of the following except: 40. Graham and Harvey( 2001) found that _____ were the two most popular capital budgeting methods. 41. The primary reason that company projects with positive net present values are considered acceptable is that: 42. What is the net present value of a project with an initial cost of $ 36,900 and cash inflows of $ 13,400, $ 21,600, and $ 10,000 for Years 1 to 3, respectively? The discount rate is 13 percent. 43. Flatte Restaurant is considering the purchase of a $ 10,800 soufflé maker. The soufflé maker has an economic life of five years and will be fully depreciated by the straight-line method. The machine will produce 2,400 soufflés per year, with each costing $ 2.80 to make and priced at $ 5.65. Assume that the discount rate is 16 percent and the tax rate is 35 percent. What is the NPV of the project? Should the company make the purchase? 44. A project costing $ 6,200 initially should produce cash inflows of $ 2,860 a year for three years. After the three years, the project will be shut down and will be sold