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Hello, I would appreciate if you could return results today, 5.19.20. Thank you. David Ortiz Motors has a target capital structure of 35% debt and

Hello,

I would appreciate if you could return results today, 5.19.20. Thank you.

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 10%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 9.84%. What is the company's cost of equity capital? Round your answer to two decimal places. Please provide a simplified formula to calculate the result and step by step how you got the figures.

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