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3. Problem 10.00 (Cost of Common Equity) LE eBook Pearson Motors has a target capital structure of 35% debt and 65% common equity, with no
3. Problem 10.00 (Cost of Common Equity) LE eBook Pearson Motors has a target capital structure of 35% debt and 65% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 11%, and its tax rate is 40%. Pearson's CFO estimates that the company's WACC is 11.60%. What is Pearson's cost of common equity Do not round Intermediate calculations. Round your answer to two decimal places
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