Raymond Mining Corporation has 9

Raymond Mining Corporation has 9.9 million shares of common stock outstanding, 430,000 shares of 6% $100 par value preferred stock outstanding, and 171,000 7.50% 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% of par. The market risk premium is 8.7%, T-bills are yielding 5%, and Raymond Mining's tax is 40%