Determine what is the companys cost of equity capital

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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 10.18%. What is the company's cost of equity capital?

Reference no: EM13333347

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Determine what is the companys cost of equity capital : 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%.

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