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

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David Ortiz Motors has a target capital structure of 45% debt and 55% 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 11.63%. What is the company's cost of equity capital? Justify your answer with the appropriate computations.

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Category:- Basic Finance
Reference No.:- M91146531

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