Find out the company cost of equity


Problem:

Dada appliances target capital structure is 40% debt and 60% equity. YTM on Dada's outstanding bonds is 9% and tax rate is 40%. Dada's CFO estimates that their WACC is 9.96%.

Requirement:

Question: What is company's cost of equity?

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Accounting Basics: Find out the company cost of equity
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