Question
eBook Problem Walk-Through Problem 9-8 WACC David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on
eBook Problem Walk-Through Problem 9-8 WACC David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the company's outstanding bonds is 12%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 9.12%. What is the company's cost of equity capital? Round your answer to two decimal places. %
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
