Solution-What the Luther weighted average cost of capital

What the Luther weighted average cost of capital

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Question - Luther Industries has 25 million shares outstanding trading at $18 per share. In addition, Luther has $150 million in outstanding debt. Suppose Luther's equity cost of capital is 13%, its debt cost of capital is 7%, and the corporate tax rate is 21%. What the Luther's weighted average cost of capital?

A) 9.8%.

B) 10.8%.

C) 11.1%.

D) 13.0%.

Reference no: EM132947787

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What the Luther weighted average cost of capital

Reference no: EM132947787

Reference no: EM132947787

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