Question
David Ortiz Motors has a target capital structure of 43% debt and 57% equity. The yield to maturity on the companys outstanding bonds is 9.7%,
David Ortiz Motors has a target capital structure of 43% debt and 57% equity. The yield to maturity on the companys outstanding bonds is 9.7%, and the companys tax rate is 30%. Ortizs CFO has calculated the companys WACC as 7.96%. What is the companys cost of equity capital?
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Finance For Non Financial Managers
Authors: Gene Siciliano
1st Edition
0071413774, 978-0071413770
