Question
Raymond Mining Corporation has 9.1 million shares of common stock outstanding, 350,000 shares of 4% $100 par value preferred stock outstanding, and 155,000 7.50% semiannual
Raymond Mining Corporation has 9.1 million shares of common stock outstanding, 350,000 shares of 4% $100 par value preferred stock outstanding, and 155,000 7.50% semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $39 per share and has a beta of 1.55, the preferred stock currently sells for $95 per share, and the bonds have 10 years to maturity and sell for 110% of par. The market risk premium is 7.9%, T-bills are yielding 5%, and Raymond Minings tax is 40%.
Equity Market Value? Debt Market Value?
Preferred Market Value?
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