Question: Please help me with this question. ONLY A and B ONLY B Pearce's Cricket Farm issued a 30-year, 8% semiannual bond 3 years ago. The

Please help me with this question.

Please help me with this question. ONLY "A" and "B" ONLY "B"

ONLY "A" and "B"

Pearce's Cricket Farm issued a 30-year, 8% semiannual bond 3 years ago.

ONLY "B"

Pearce's Cricket Farm issued a 30-year, 8% semiannual bond 3 years ago. The bond currently sells for 96% of its face value. The company's tax rate is 20%. Assume the par value of the bond is $1,000. a. What is the pre-tax cost of debt? (Do not round Intermediate calculations. Round the final answer to 3 decimal places.) Pre-tax cost of debt % b. What is the after-tax cost of debt? (Do not round Intermediate calculations. Round the final answer to 3 decimal places.) After-tax cost of debt c. Which is more relevant, the pre-tax or the after-tax cost of debt? After-tax cost of debt O Pre-tax cost of debt Raymond Mining Corporation has 10.0 million shares of common stock outstanding, 440,000 shares of 4% $100 par value preferred stock outstanding, and 173,000 7.50% semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $48 per share and has a beta of 1.50, the preferred stock currently sells for $97 per share, and the bonds have 10 years to maturity and sell for 115% of par. The market risk premlum Is 8.8%, T-bills are yielding 5%, and Raymond Mining's tax Is 40%. a. What is the firm's market value capital structure? (Enter your answers in whole dollars.) Market value $ 19895eeee Debt Equity $ 48eeeeeee Preferred stock $ 42680000 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 Intermedlate calculations. Enter your answer as a percentage rounded to 3 decimal places.) Discount rate 13.26 %

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