LSUS Corporation has $80,000$ bonds outstanding that are selling at par value. Bonds with

similar characteristics are yielding $8\mathrm{.}6$ percent. The company also has $4$ million shares of

common stock outstanding. The stock has a beta of $1\mathrm{.}1$ and sells for $$40$ a share. The U$.$S$.$

Treasury bill is yielding $4$ percent and the market risk premium is $8$ percent. LSUS

Corporation's tax rate is $34$ percent. What is LSUS Corporation's weighted average cost of

capital?

Select one:

a$.10\mathrm{.}10\%$

b$.10\mathrm{.}65\%$

c$.11\mathrm{.}47\%$

d$.10\mathrm{.}42\%$