What is the company’s cost of equity capital

Please indicate how she should treat the following items for 2016
January 3, 2018
William and Carla file a joint tax return. Carla earned $26,000 during the year, while William attended law school full-time for 10 months and earned no income
January 3, 2018

What is the company’s cost of equity capital

Finance Basics

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 9%, and the company’s tax rate is 40%. Ortiz’s CFO has calculated the company’s WACC as 9.96%.

What is the company’s cost of equity capital

 

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