Question: Please show work, cheers :) QUESTION 4: Raymond Mining Corporation has 8.5 million shares of common stock outstanding, 250,000 shares of 5 percent $100 par

Please show work, cheers :) QUESTION 4: Raymond Mining Corporation has

Please show work, cheers :)

QUESTION 4: Raymond Mining Corporation has 8.5 million shares of common stock outstanding, 250,000 shares of 5 percent $100 par value preferred stock outstanding, and 135,000 7.5 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $34 per share and has a beta of 1.25, the preferred stock currently sells for $91 per share, and the bonds have 15 years to maturity and sell for 114 percent of par. The market risk premium is 7.5 percent, T-bills are yielding 4 percent, and the company's tax rate is 35 percent. A. What is the firm's market value capital structure? 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? Calculate the rate

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