Business, 24.04.2020 18:33 Damagingawsomeness2

Se the following information to answer the question(s) below. 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 40%. Luther's weighted average cost of capital is closest to:

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