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General Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to maturity on the company's
General Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 11%, and its tax rate is 35%, GM's CFO estimates that the company's WACC is 9.75%, what is GM's cost of common equity? 11.87% O 10.31% None O 11.00% 8.58%
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