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 11%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 9.39%. What is the company's cost of equity capital? Round your answer to two decimal places.

Cost of Equity is 11.25%

Explanation:

WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.

According to WACC formula

WACC = ( Cost of equity x Weightage of equity )+ ( Cost of debt ( 1- t) x Weightage of debt )

9.39% = ( Cost of equity x 60% )+ ( 11% ( 1 - 0.4) x 40% )

9.39% = ( Cost of equity x 60% )+ ( 11% ( 0.6) x 40% )

9.39% = ( Cost of equity x 60% )+ ( 6.6% x 40% )

9.39% = ( Cost of equity x 60% )+ 2.64%

9.39% - 2.64% = Cost of equity x 60%

6.75% = Cost of equity x 60%

Cost of equity = 6.75% /  60%

Cost of equity = 11.25%

c.

explanation:

regressive tax taxes the poor and less of the wealthy. this the rich get richer and the poor get more poor. this would create a large wealth gap.

the correct answer is:

it required the president to inform congress within forty-eight hours of any new troop commitment.

the war powers resolution (1973) is a federal law designed to limit the u.s. president’s ability to initiate or intensify military actions abroad without the approval of the congress.

it establishes that the president can send armed forces into action abroad only by declaration of war by congress, statutory authorization, or in case of a national emergency created by attack upon the united states, its territories or possessions, or its armed forces.

it requires the president to notify congress within 48 hours of sending armed forces to military action.