Mining corp has 9 million shares of common stock

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Mining Corp has 9 million shares of common stock outstanding, 350000 shares of preferred stock outstanding with $9 annual stated dividend, and 120000 bonds outstanding with a 10% semiannual coupon $1000 par and 22 years till maturity.

The common stock currenly sells for $32 pers share and has a beta of 1.25 the preferred stock currently sells for $80 per share and the bonds sell for $930

The market risk premium is 8.6% T-bills are yielding 6% and Mining's tax rate is 36%

a) Calculate the after tax cost of each of the (3) sources of capital of mining corp?

b) Calculate the weights of each source in mining capital structure using market weights?

c) Calculate mining corps weighted average cost of capital?

Reference no: EM13619490

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