Raymond Mining Corporation has 2 million shares of common stock outstanding and 25,000 semiannual bonds outstanding,...

Raymond Mining Corporation has 2 million shares of common stock outstanding and 25,000 semiannual bonds outstanding, each with an annual coupon rate of 10% and a par value $1,000. The common stock currently sells for $35 per share and has a beta of 1.25. The bonds have exactly 10 years to maturity and the current annual yield to maturity (YTM) is 9%. The market risk premium for stocks is 7.6%, T-bills are yielding 4%, and company's tax rate is 35%. Assume that CAPM holds, but IGNORE the impact of leverage on cost of equity capital. Calculate the following: Market Value of debt = $ Market Value Debt/Equity Ratio = After tax Cost of Debt = % Cost of equity= % WACC = %

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

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Raymond Mining Corporation has 8.5 million shares of common stock outstanding and 135,000 quarterly bonds outstanding...

Raymond Mining Corporation has 8.5 million shares of common stock outstanding and 135,000 quarterly bonds outstanding with face value $1000 and coupon rate of 7.5%. The common stock currently sells for $34 per share and has a beta of 1.25, and the bonds have 15 years to maturity and sell for 114 percent of the face value. The market risk premium is 7.5 percent, T-bills are yielding 4 percent (thus risk free rate is 4%), and Raymond Mining tax rate...

Raymond Mining Corporation has 8.5 million shares of common stock outstanding and 135,000 quarterly bonds outstanding...

Raymond Mining Corporation has 8.5 million shares of common stock outstanding and 135,000 quarterly bonds outstanding with face value $1000 and coupon rate of 7.5%. The common stock currently sells for $34 per share and has a beta of 1.25, and the bonds have 15 years to maturity and sell for 114 percent of the face value. The market risk premium is 7.5 percent, T-bills are yielding 4 percent (thus risk free rate is 4%), and Raymond Mining tax rate...

Raymond Mining Corporation has 8.9 million shares of common stock outstanding, 330,000 shares of 5% $100...

Raymond Mining Corporation has 8.9 million shares of common stock outstanding, 330,000 shares of 5% $100 par value preferred stock outstanding, and 151,000 7.50% semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $37 per share and has a beta of 1.45, the preferred stock currently sells for $93 per share, and the bonds have 15 years to maturity and sell for 118% of par. The market risk premium is 7.7%, T-bills are yielding 4%, and...

Raymond Mining Corporation has 8.5 million shares of common stock outstanding, 290,000 shares of 4% $100...

Raymond Mining Corporation has 8.5 million shares of common stock outstanding, 290,000 shares of 4% $100 par value preferred stock outstanding, and 143,000 7.50% semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $33 per share and has a beta of 1.25, the preferred stock currently sells for $95 per share, and the bonds have 10 years to maturity and sell for 114% of par. The market risk premium is 7.3%, T-bills are yielding 6%, and...

Raymond Mining Corporation has 9.4 million shares of common stock outstanding, 380,000 shares of 4% $100...

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 Corporation has 8.4 million shares of common stock outstanding, 280,000 shares of 6 percent...

Raymond Mining Corporation has 8.4 million shares of common stock outstanding, 280,000 shares of 6 percent $100 par value preferred stock outstanding, and 141,000 7.50 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $32 per share and has a beta of 1.20, the preferred stock currently sells for $94 per share, and the bonds have 20 years to maturity and sell for 113 percent of par. The market risk premium is 7.2 percent, T-bills...

Raymond Mining Corporation has 9.9 million shares of common stock outstanding, 430,000 shares of 6 percent...

Raymond Mining Corporation has 9.9 million shares of common stock outstanding, 430,000 shares of 6 percent $100 par value preferred stock outstanding, and 171,000 7.50 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $47 per share and has a beta of 1.45, the preferred stock currently sells for $96 per share, and the bonds have 20 years to maturity and sell for 118 percent of par. The market risk premium is 8.7 percent, T-bills...

Titas Mining Corporation has 6.4 million shares of common stock outstanding and 175,000 6.2% semiannual bonds...

Titas Mining Corporation has 6.4 million shares of common stock outstanding and 175,000 6.2% semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $53 per share and has a beta of 1.15; the bonds have 25 years to maturity and sell for 106% of par. The market risk premium is 6.8%, T-bills are yielding 3.1% and the company’s tax rate is 22%. a. What is the firm’s market value capital structure? b. If the company is...

Titan Mining Corporation has 8.6million shares of common stock outstanding and 300,000 5.4 percent semiannual bonds...

Titan Mining Corporation has 8.6million shares of common stock outstanding and 300,000 5.4 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $34 per share and has a beta of 1.3; the bonds have 15 years to maturity and sell for 115 percent of par. The market risk premium is 7.4 percent, T-bills are yielding 3 percent, and the company's tax rate is 21 percent. a. What is the firm's market value capital structure? b....

Titan Mining Corporation has 9.7 million shares of common stock outstanding and 410,000 4.3 percent semiannual...

Titan Mining Corporation has 9.7 million shares of common stock outstanding and 410,000 4.3 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $45 per share and has a beta of 1.25; the bonds have 10 years to maturity and sell for 116 percent of par. The market risk premium is 8.5 percent, T-bills are yielding 5 percent, and the company’s tax rate is 22 percent a. What is the firm's market value capital structure?...

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Raymond Mining Corporation has 2 million shares of common stock outstanding and 25,000 semiannual bonds outstanding,...

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Raymond Mining Corporation has 8.5 million shares of common stock outstanding and 135,000 quarterly bonds outstanding...

Raymond Mining Corporation has 8.5 million shares of common stock outstanding and 135,000 quarterly bonds outstanding...

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