Raymond Mining Corporation has 9.9 million shares of common stock outstanding, 430,000 shares of 6 percent...

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Raymond Mining Corporation has 9.9 million shares of commonstock outstanding, 430,000 shares of 6 percent $100 par valuepreferred stock outstanding, and 171,000 7.50 percent semiannualbonds outstanding, par value $1,000 each. The common stockcurrently sells for $47 per share and has a beta of 1.45, thepreferred stock currently sells for $96 per share, and the bondshave 20 years to maturity and sell for 118 percent of par. Themarket risk premium is 8.7 percent, T-bills are yielding 5 percent,and Raymond Mining’s tax rate is 40 percent.
a.
What is the firm’s market value capital structure?(Round the final answers to nearest dollaramount.)
Market value
  Debt
  Equity
  Preferred stock
If Raymond Mining is evaluating a new investment project thathas the same risk as the firm’s typical project, what rate shouldthe firm use to discount the project’s cash flows? (Do notround intermediate calculations. Round the final answer to 3decimal places.)

  Discount rate %

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Raymond Mining Corporation has 9.9 million shares of commonstock outstanding, 430,000 shares of 6 percent $100 par valuepreferred stock outstanding, and 171,000 7.50 percent semiannualbonds outstanding, par value $1,000 each. The common stockcurrently sells for $47 per share and has a beta of 1.45, thepreferred stock currently sells for $96 per share, and the bondshave 20 years to maturity and sell for 118 percent of par. Themarket risk premium is 8.7 percent, T-bills are yielding 5 percent,and Raymond Mining’s tax rate is 40 percent.a.What is the firm’s market value capital structure?(Round the final answers to nearest dollaramount.)Market value Debt Equity Preferred stock If Raymond Mining is evaluating a new investment project thathas the same risk as the firm’s typical project, what rate shouldthe firm use to discount the project’s cash flows? (Do notround intermediate calculations. Round the final answer to 3decimal places.) Discount rate%