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Business, 05.07.2020 14:01 leandrogarin37p2g5ds

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 12%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 11.54%. What is the company's cost of equity capital? Round your answer to two decimal places.

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David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity...
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