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Business, 20.12.2019 22:31 jones03riley

Bryan mining corporation has 7.5 million shares of common stock outstanding, 280,000 shares of 4% preferred stock outstanding, and 180,000 6% semiannual coupon bonds outstanding, par value $1000 of each. the common stock currently sells for $50 per share and has a beta of 1.6, the preferred stock currently sells for $45 per share, and the bonds have 24 years to maturity and sell for 130.67% of par. the market risk premium is 8%, t-bills are yielding 3% and the company's tax rate is 21%. calculate the weights if each source of capital (debt, preferred stock, & common stock).

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