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View Full Version : Calculate cost of equity capital with limited information


bill mccoy
Mar 13, 2010, 09:26 AM
company x has target capital structure of 40% debt and 60% equity. Yield to maturity on outstanding bonds is 9% and company's tax rate is 40%. Company has calculated WAAC as 9.96%. What is the company's cost of equity capital?

bill mccoy
Mar 13, 2010, 09:29 AM
Target capital structure of 40% debt and 60% equity. Yield to maturity on company's outstanding bonds is 9% and company's tax rate is 40%. Company has calculated WACC as 9.96%. What is the company's cost of equity capital?

morgaine300
Mar 14, 2010, 01:30 AM
Please do not double post as it just tends to confuse things. I've merged your posts back into one thread.