Question
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
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 10%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 9.40%.
What is the company's cost of equity capital? Round your answer to two decimal places. %
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Introduction To Personal Finance Beginning Your Financial Journey
Authors: Lance Palmer, John E. Grable
2nd Edition
1119797063, 978-1119797067
