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Lexington inc. currently has a stock price of $53 and 40,000 shares outstanding. The company's beta is 1.4 and the risk-free rate is currently 2%

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Lexington inc. currently has a stock price of $53 and 40,000 shares outstanding. The company's beta is 1.4 and the risk-free rate is currently 2% per year. Lexington also has bonds trading in the market with a quoted price of 93.78 and yield to maturity of 16%. Find Lexington's equity cost of capital if their current yield is 9% and the Expected return on the market is 10.3%

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