David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the company's out
Posted: Fri Jul 01, 2022 7:51 am
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.