Question: please show your work and explain it thank you Use the following data for securities issued by LuccasenCorp. to answer questions 1 - 5: Bonds:
Use the following data for securities issued by LuccasenCorp. to answer questions 1 - 5: Bonds: The company issued 240,000 bonds. The bonds have a $1,000 face value with 9.5% coupons with annual payments, 22 years to maturity, and currently sell for $940. The marginal tax rate is 5%. Equity: The company has 9,000,000 shares of (common) stock outstanding, selling for $75 per share. The company's beta is 1.1, the risk free rate is 1%, and the market risk premium is 9%. 5. What is the company's weighted average cost of capital
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