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eBook Pearson Motors has a target capital structure of 45% debt and 55% bommon equity, with no preferred stock. The yield to maturity on the

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eBook Pearson Motors has a target capital structure of 45% debt and 55% bommon equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 10%, and Its tax rate ls 25%. Pearson's CFO estimates that the company's WACC IS 11.40% What is Pearson's cost of common equity? Do not round Intermediate calculations. Round your answer to two decimal places

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