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BC Mining Coloration has 9.3 million shares of common stock outstanding and 127,000 semi-annual bonds outstanding with a face value of $1.000 and a 6
BC Mining Coloration has 9.3 million shares of common stock outstanding and 127,000 semi-annual bonds outstanding with a face value of $1.000 and a 6 5% coupon rate. The common stock currently sells for $342 per share and has a beta of 1.18, and the bonds have 13 years to maturity and sell for 108% of face value. The market risk premium is 6.9%, T-bills (risk-free) yield 5%, and the company's tax rate is 0% ) What is the fir's market value capital structure? b) Estimate the firm's cost of equity, and after tax cost of debt. (c) Estimate the company's total cost of capital
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