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t: Homework Chapter 9: Cost of Capital Assignment Score: 60.00 Problem 9-08 (WACC) 4 Question 5 of Check My Work WACC David Ortiz Motors has

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t: Homework Chapter 9: Cost of Capital Assignment Score: 60.00 Problem 9-08 (WACC) 4 Question 5 of Check My Work WACC David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yeld to maturity on the company's outstanding bonds is 9%, and the company's tax rate is 25%, Ortiz's CFO has calculated the company's WACC as 11.1%. What is the company's cost of equity capital? Round your answer to the nearest whole number. %

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