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1 Fearson Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to maturity on the
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Fearson Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is B\%, and Its tax rate is 25\%. Pearson's CFO estimates that the company's WACc is 12.40%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to twodedmal places Step by Step Solution
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Multinational Financial Management
Authors: Shapiro A.C.
9th International Edition
8126536934, 9788126536931
