This paper circulates around the core theme of David Ortiz Motors has a target capital structure of 30% debt and 70% equity. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 79. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
WACCDavid Ortiz Motors has a target capital structure of 30% debt and 70% equity. The yield to maturity on the company’s outstanding bonds is 8%, and the company’s tax rate is 40%. Ortiz’s CFO has calculated the company’s WACC as 9.54%. What is the company’s cost of equity capital? Round your answer to two decimal places.____%Bond Yield and After-Tax Cost of DebtA company’s 8% coupon rate, semiannual payment, $1,000 par value bond that matures in 30 years sells at a price of $693.01. The company’s federal-plus-state tax rate is 30%. What is the firm’s after-tax component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal rate.) Round your answer to two decimal places._____%