LSUS Corporation has 80,000 bonds outstanding that areselling at par value. Bonds with similar characteristics areyielding 8.6 percent. The company also has 4 million shares ofcommon stock outstanding. The stock has a beta of 1.1 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'sweighted average cost of capital?