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can you solve the two questions separately? 3. David Ortiz Motors has a target capital structure of 35% debt and 65% equity. The yield to

can you solve the two questions separately? image text in transcribed
3. David Ortiz Motors has a target capital structure of 35% debt and 65% equity. The yield to maturity on the company's outstanding bonds is 8%, and the company's tax rate is 35%. Ortiz's CFO has calculated the company's WACC as 11%. What is the company's cost of equity capital? (4 Points) 4. A company has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio? (10 Points)

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