Back to Assignment Attempts Average/1 3. Problem 10.03 (Cost of Common Equity) eBook Pearson Motors has a target capital structure of 30% debt and 70% 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 12.90%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. % Grade it Now Save & Continue Continue without saving