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Raymond Mining Corporation has 9.1 million shares of common stock outstanding, 350,000 shares of 4%$100 par value preferred stock outstanding, and 155,0007.50% semiannual bonds outstanding,
Raymond Mining Corporation has 9.1 million shares of common stock outstanding, 350,000 shares of 4%$100 par value preferred stock outstanding, and 155,0007.50% 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 Mining's tax rate is 40%. a. What is the firm's market value capital structure? (Enter your answers in whole dollars.) Debt Market value Equity $ Preferred stock $ b. If Raymond Mining is evaluating a new investment project that has
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