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?

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?

Please do not double post as it just tends to confuse things. I've merged your posts back into one thread.