eBook 4 5. Pearson Motors has a target capital structure of 30% debt and 70% common equity, with no preferred stock. The yield to o maturity on the company's outstanding bonds is 10%, and its tax rate is 40%. Pearson's CFO estimates that the company's WACC IS 11.10%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. 6. 7