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eBook Pearson Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to matunity on the
eBook Pearson Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to matunity on the company's outstanding bonds is 12%, and its tax rate a 25%. Pearson's CFO estimates that the company's WACC # 12.90%. What is Pearson's cost of common equity? Do not round intermediate calculation Round your answer to two decimal places
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Financial Management Core Concepts
Authors: Ray Brooks, Raymond Brooks
1st Edition
0321155173, 9780321155177
