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

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WACC David Ortiz Motors has a target capital structure of 30 percent debt and 70 percent equity. The yield to maturity on the company's outstanding bonds is 8 percent, and the company's tax rate is 40 percent. Ortiz's CFO has find outd the company's WACC as 10.82 percent. What is the company's cost of equity capital? Round the answer to the nearest hundredth.

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