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1. Percy Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the companys outstanding bonds is 9%,
1. Percy Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the companys outstanding bonds is 9%, and the tax rate is 40%. Percys CFO has calculated the companys WACC as 9.96%. What is the companys cost of common equity?
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