David Ortiz Motors has a target capiatl 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 40%. Ortiz s CFO has calculated the company s WACC is 9.96%/ What is the company s cost of equity capital?

David Ortiz Motors has a target capiatl 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 40%. Ortiz s CFO has calculated the company s WACC is 9.96%/ What is the company s cost of equity capital?








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