Return to Problem 14-16 Finding the WACC (L04) Raymond Mining Corporation has 9.4 million shares of common stock outstanding, 380,000 shares of 4% $100 par value preferred stock outstanding, and 161,000 7.50% semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $42 per share and has a beta of 1.20, the preferred stock currently sells for $91 per share, and the bonds have 10 years to maturity and sell for 113% of par. The market risk premium is 8.2%, T-bills are yielding 3%, and Raymond Mining's tax is 35%. a. What is the firm's market value capital structure? (Enter your answers in whole dollars.) Market value $ 181930000 Debt $ 394800000 Equity $ 34580000 Preferred stock b. If Raymond Mining is evaluating a new investment project that has the same risk as the firm's typical project, what rate should the firm use to discount the project's cash flows? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 3 decimal places.) 9.747 Discount rate % borg aw E11 ENG US - E