Question
GM has a target capital structure of 40 percent debt and 60 percent equity. The yield to maturity on the companys outstanding bond is 10
GM has a target capital structure of 40 percent debt and 60 percent equity. The yield to maturity on the companys outstanding bond is 10 percent, and the companys tax rate is 30 percent. The WACC for the company is 9.94 percent.
Required: Calculate the companys cost of equity capital.
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International Financial Reporting Standards An Introduction
Authors: Belverd E. Needles, Marian Powers
3rd Edition
1133187943, 978-1133187943
