Answer Happy

Posted: **Sun May 29, 2022 6:36 pm**

: 10 David Ortiz Motors Has A Target Capital Structure Of 40 Debt And 60 Equity The Yield To Maturity On The Company S 1 (21.01 KiB) Viewed 15 times

10. David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the company's outstanding bonds is 9%, and the company's tax rate is 25%. Ortiz's CFO has calculated the company's WACC as 9.9%. What is the company's cost of equity capital?