Cost of Capital Chapter (Question for WACC), Thank you so much.

16. Finding the WACC. Deception Mining Corporation has 6.7 million ordinary shares outstanding; 270 000, 6.8% preference shares outstanding; and 250 000 8.2% half- yearly bonds outstanding, par value $1000 each. The ordinary shares currently sell for $57 and have a beta of 1.13; the preference shares sell for $113; and the bonds have 20 years to maturity and sell for 109% of par. The market risk premium is 7.8%; government bonds are yielding 5.3%; and Deception Mining's tax rate is 30%. The book value of one preference share is $100. a. What is the rm's market-value capital structure? b. If Deception Mining is evaluating a new investment project that has the same risk as the rm's typical project, what rate should the rm use to discount the project's cash ows under a classical tax system? Lo 12.3