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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

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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 12%, and its tax rate is 25%. Pearson's CFO estimates that the company's WACC Is 10.90%. What is Pearson's cost of common equity? Do not round intermediate calculations, Round your answer to two decimal places %

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