Problem 9-8 WACC David Ortiz Motors has a target capital structure of 30% debt and 70% equity.
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Problem 9-8
WACC
David Ortiz Motors has a target capital structure of 30% debt and 70% equity. The yield to maturity on the company's outstanding bonds is 8%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 11.28%. What is the company's cost of equity capital? Round your answer to two decimal places.
Related Book For
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
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