Raymond Mining Corporation has 9.8 million shares of common stock outstanding, 420,000 shares of 5 dollar preferred stock outstanding, and 169,000 7.5 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $46 per share and has a beta of 1.40, the preferred stock currently sells for $95 per share, and the bonds have 15 years to maturity and sell for 117 percent of par. The market risk premium is 8.6 percent, T-bills are yielding 4 percent, and Adex Minings tax rate is 40 percent.

a.	What is the firms market value capital structure? (Round your final answers to 4 decimal places. (e.g., 32.1616))

	Market value
Debt
Preferred stock
Equity

b.	If Raymond Mining is evaluating a new investment project that has the same risk as the firms typical project, what rate should the firm use to discount the projects cash flows? (Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., 32.161))