1. Problem 10.03 (Cost of Common Equity) eBook Pearson 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 12%, and its tax rate is 25%. Pearson's CFO estimates that the company's WACC is 11.90%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places