2. What is the current market value of Oxford Resources debt (in total).

3. What is the current market price of one of Oxford Resources preferred shares?

4. What is the current market value of Oxford Resources preferred shares?

Assume each preferred share is priced at $85 per share

5. What is the current market price of one of Oxford Resources common stocks?

6. What are the current market values of Oxford Resources common stock?

Assume each common share is priced at $40 per share

7. What are the weights of Oxford Resources capital structure?

Assume the market of the firms capital structure components are as follows: debt $28.75 million, preferred shares $5.25 million and equity $36.0 million

8. What is the WACC for Oxford Resources? Assume the weights of Oxford Resources capital structure are as follows

Assume (i) W_e=40%, W_ps=7% & W_d=53%; (ii) Cost of debt (R_d)= 8.5% (iii) cost preferred shares =6.5% (iv) Cost of equity (R_e)=12.5%

Oxford Resources Ltd. has discovered a large Lithium Carbonate deposit in a remote region in Northern Ontario and is considering raising additional capital to fund a new mine to develop this resource. Its financial planners want to maintain its existing capital structure (debt, preferred share and common share proportions) in raising new capital for this project. Its current capital structure is made up of the following: Debt (Bonds) - 20,000 bonds, which have a face value of $1,000, with a maturity of 14 years, and pay a semi-coupon of $33. The current yield to maturity on these bonds are 6.72 percent compounded semi-annually. Preferred Shares - 300,000 preferred shares, which pay annual dividend of $4.5. Similar preferred shares have a required rate of return of 6 percent. Common Shares - 650,000 common shares, which recently, paid an annual dividend of $1.80. This dividend is expected to grow at 2.5% in the future. The required rate of return for these shares is 7.5%. Tax rate is 40% 1. What is the current market value of one of Oxford Resources' bond