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8 David Ortiz Motors has a target capital structure of 35% debt and 65%...

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David Ortiz Motors has a target capital structure of 35% debt and 65% equity. The yield to maturity on the company's outstanding bonds is 10%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 10.49%. What is the company's cost of equity capital? Round your answer to two decimal places

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