0.6

Luther Industries has 35 million shares outstanding trading at $18 per share. In addition, Luther has $165 million in outstanding debt. Suppose Luther's equity cost of capital is 13%, its debt cost of capital is 7%, and the corporate tax rate is 35%. Luther's unlevered cost of capital is closest to: 11.75% 9.8% 10.8% 11.5% Luther's weighted average cost of capital is closest to: 9.8% 10.8% 11.24 13.0%