David ortiz motors has a target capital structure of 30, Financial Management

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David ortiz motors has a target capital structure of 30

David Ortiz Motors has a target capital structure of 30% debt and 70% equity. The yield to maturity on the company's outstanding bonds is 7.20%, and the company's tax rate is 35%. Ortiz's CFO has calculated the company's WACC as 10.95%. What is the company's cost of equity capital? EXPLAIN ANSWER AND SHOW WORK

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Financial Management: David ortiz motors has a target capital structure of 30

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Financial Management: David ortiz motors has a target capital structure of 30

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