1. David Ortiz Motors has a target capital structure of 40 percent debt and 60 percent equity. The yield to maturity on the company’s outstanding bonds is 9 percent, and company’s tax rate is 40 percent. Ortiz’s CFO has calculated the company’s WACC as 9.96 percent. What is the company’s cost of equity? If the company will pay a constant annual dividend of $2.20 a share, what is the Ortiz’s current stock price?
https://theessaygurus.com/blog/wp-content/uploads/2022/05/unnamed-300x71.png 0 0 https://theessaygurus.com/blog/wp-content/uploads/2022/05/unnamed-300x71.png 2022-11-22 19:37:492022-11-22 19:37:491. david ortiz motors has a target capital structure of 40 percent