David ortiz motors has a target capital structure of 30, Ask an Expert

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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 9%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 10.26%. What is the company's cost of equity capital? Round your answer to two decimal places.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92093201

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