Problem $14-16$ Finding the WACC $($LO$4)$

Raymond Mining Corporation has $8\mathrm{.}8$ million shares of common stock outstanding, $320,000$ shares of $4\%$$$100$ par value preferred

stock outstanding, and $149,0007\mathrm{.}50\%$ semiannual bonds outstanding, par value $$1,000$ each. The common stock currently sells for

$$36$ per share and has a beta of $1\mathrm{.}40,$ the preferred stock currently sells for $$92$ per share, and the bonds have $10$ years to maturity

and sell for $117\%$ of par. The market risk premium is $7\mathrm{.}6\%,$ T$-$bills are yielding $5\%,$ and Raymond Mining's tax rate is $38\%.$

a$.$ What is the firm's market value capital structure? $($Enter your answers in whole dollars.$)$

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.$)$