9.8 Ridgeway Motors has a target capital structure of 30% debt and 70% equity. The yield to maturity on the company's outstanding bonds is 8%, and the company's tax rate is 30%. Ridgeway's CFO has calculated the company's WACC as 9.38%. What is the company's cost of equity capital? 9.9 A company's 6% coupon rate, semiannual payment, $1,000 par value bond that matures in 30 years sells at a price of $821.97. The company's tax rate is 30%. What is the firm's component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal rate.)