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Companys cost of equity capital

GD has a target capital structure of 40% debt and the 60% equity. The yield to maturity on the companys outstanding bonds is 9% and the companys tax rate is 40%. GD's CFO has calculated the companys WACC as 9.96%. What is the companys cost of equity capital?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Companys cost of equity capital

Reference No:- TGS0671180

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Concept of federalism to shape american political behavior

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Q : How much would her employer take from her pay to satisfy

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Q : Companys cost of equity capital

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Companys cost of equity capital

Reference No:- TGS0671180

Recent Questions Asked Finance Basics

Q : Concept of federalism to shape american political behavior

Q : Bank cost of preferred stock

Q : How much would her employer take from her pay to satisfy

Q : What are the moral justifications for the free market system

Q : Companys cost of equity capital

Q : Explain law of price and theory of purchasing power parity

Q : What is helenes and paulines basis in the land

Q : What would an antitrust

Q : Civil rights movement

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