1. Martin Mining has the following information regarding its debt and equity. Find the weighted average cost of capital. Assume the tax rate is 25%.

Beta	1.25
Expected Return on Market	13.75%
Treasury Bond Rate	2.3%
Flotation Cost of Equity	3%
Book Value of Debt	$3,000,000,000
Market Value of Debt	$3,500,000,000
Book Value of Equity	$5,500,000,000
Market Value of Equity	$4,250,000,000
Bond Information	Coupon rate = 6%, maturity = 20 years, maturity value =$1,000 and the current price is 982.25. Assume interest is paid semiannually.