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Peareon Motors has a target capital structure of 50% debt and 50% commen oquily, with no pretarred stock. The yield to matrity on the ccmpary'm

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Peareon Motors has a target capital structure of 50% debt and 50% commen oquily, with no pretarred stock. The yield to matrity on the ccmpary'm aulstarding bondt is 9% and its tax rale is 40\% Pearson's CFO estimaies that the company's WACC is 10.50%. What is Pearson's cost of common equity? 13.5%18.3%15.6%14.0%

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