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Given the following information, calculate the weighted average cost of capital for Gold Mining Corporation. Balance Sheet capital structure: Debt. ........................................... 60% Common equity ..........................

Given the following information, calculate the weighted average cost of capital for Gold Mining Corporation. Balance Sheet capital structure: Debt. ........................................... 60% Common equity .......................... 40% Additional information: Gold Mining Corp 60% debt issued through a Bond coupon rate of....................... 10% US Treasury bill rate reference ................................................................................. 5% Country Corporate tax rate ..................................................................................... 40% Calculate the cost of capital of Gold Mining Corp. to be used in its standard investments in new mining projects. Research: Find a US report on stock exchanges containing BETA references (free reports available on the Internet) that Precious Metals mining companies should take for BETA (volatility factor compared to neutral stock indexes) to be used for these calculations. What premium in % should be used in the formula to calculate the cost of equity? Research the same market data available to respond

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