Humber Mining Corporation has outstanding:

Eight million shares of common stock, which currently sell for $57 per share and have a beta of 1.25. The company paid a dividend this year of $2.00.

400,000 shares of 5% preferred stock, which currently sell for $78 per share

150,000 6.5% semi-annual bonds, par value $1,000 each. The bonds have 15 years to maturity and currently sell for 94% of par.

The market risk premium is 8%, T-Bills are yielding 5.5%, and Humber Minings tax rate is 34%.

a- What is the firms capital structure based on market values? What is the firms total market value?

b- Calculate Humber Minings cost of common stock.

c- Calculate Humber Minings cost of preferred stock.

d- Calculate Humber Minings cost of debt.

e- Calculate Humber Minings weighted average cost of capital