What is the companys cost of equity capital

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Reference no: EM131376104

David Ortiz Motors has a target capital structure of 40 percent debt and 60 percent equity.

The yield to maturity on the company's outstanding bonds is 9 percent, and the company's tax rate is 40 percent. Ortiz's CFO has calculated the company's WACC as 9.96 percent. What is the company's cost of equity capital?

Reference no: EM131376104

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