Use the Following Information to Answer the Question(s)below

question 76

Multiple Choice

Use 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:

• A)9.8%
• B)10.8%
• C)11.5%
• D)13.0%

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Definitions:

Symptoms

Physical or psychological signs indicating the presence of a condition or disease.

Diagnosis

The process of identifying a disease, condition, or injury from its signs and symptoms by a health professional.

DSM-5 Category

A classification found within the Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, which is used by healthcare professionals to diagnose and classify mental disorders.

Intrusive Thoughts

Unwanted and often distressing thoughts or images that spontaneously appear in a person's mind.