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5. Raymond Mining Corporation has 5 million shares of common stock outstanding and 200,000 semi annual bonds outstanding with a face value of $1,000 and
5. Raymond Mining Corporation has 5 million shares of common stock outstanding and 200,000 semi annual bonds outstanding with a face value of $1,000 and a 8% coupon rate. The common stock currentl sells for $25 per share and has a beta of 0.95, and the bonds have 20 years to maturity and sell for 98% face value. The market risk premium is 7.5%, T-bills (risk-free) yield 3%, and the company's tax rate 30%. Estimate the company's total cost of capital (WACC). (25 ma
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