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    bill mccoy's Avatar
    bill mccoy Posts: 2, Reputation: 1
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    #1

    Mar 13, 2010, 09:26 AM
    calculate cost of equity capital with limited information
    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's Avatar
    bill mccoy Posts: 2, Reputation: 1
    New Member
    		  
    #2

    Mar 13, 2010, 09:29 AM
    Calculate cost of equity capital with limited information
    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's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    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.
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