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What is lsus corporation weighted average cost of capital

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LSUS Corporation has 80,000 bonds outstanding that are selling at par valueyielding 8.6 percent. Bonds with similar characteristics are . The company also has 4 million shares of common 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's weighted average cost of capital?

Reference no: EM132656441

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