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eBook Pearson Motors has a target capital structure of 40% debt and 60% common equity, with no preferred stock. The yield to maturity on
eBook Pearson Motors has a target capital structure of 40% debt and 60% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 9%, and its tax rate is 25%. Pearson's CFO estimates that the company's WACC is 12.80%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. % Check My Work
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Advanced Accounting
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
2nd edition
1934319309, 978-1934319307
