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Raymond Mining Corporation has 8.2 million shares of common stock outstanding, 260,000 shares of 4% $100 par value preferred
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Answer #1

Market value of Debt: 137000 * $1000x 110°C $150,700,000 Market value of Common Stock = 8,200,000 x $30 $ 246000,000 Marleet

Page No cest 07 Debt = Yoeld to maturity = 6.147% After tax cost of Debt = 6.147. x(1- Tax Rate) 6.147. x 11-387) 6.147%* 016

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