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    Cost of Equity Capital

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    David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity is the on company's outstanding bonds is 9%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 9.96%. What is the company's cost of equity capital?

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    https://brainmass.com/business/bond-valuation/cost-of-equity-capital-333719

    Solution Summary

    The solution explains how to calculate the cost of equity capital

    $2.19

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