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eBook 1 Problem Walk-Through WACC David Ortiz Motors has a target capital structure of 35%...

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eBook 1 Problem Walk-Through WACC David Ortiz Motors has a target capital structure of 35% debt and 65% equity. The yield to maturity on the company's outstanding bonds is 9%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 8.68%. What is the company's cost of equity capital? Round your answer to two decimal places. %

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