David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the company's out

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David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the company's out

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David Ortiz Motors has a target capital structure of 40% debtand 60% equity. The yield to maturity on the company's outstandingbonds is 8%, and the company's tax rate is 25%. Ortiz's CFO hascalculated the company's WACC as 8.4%. What is the company's costof equity capital? Round your answer to the nearest wholenumber.
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