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LSUS Corporation has 8 0 , 0 0 0 bonds outstanding that are selling at par value. Bonds with similar characteristics are yielding 8 .
LSUS Corporation has bonds outstanding that are selling at par value. Bonds with similar characteristics are yielding percent. The company also has million shares of common stock outstanding. The stock has a beta of and sells for $ a share. The US Treasury bill is yielding percent and the market risk premium is percent. LSUS Corporation's tax rate is percent. What is LSUS Corporation's weighted average cost of capital? Select one:
a
b
c
d
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