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Pearson Motors has a capital structure of 30% debt and 70% common equity. The company pays an interest of 9% to its loans and its

Pearson Motors has a capital structure of 30% debt and 70% common equity. The company pays an interest of 9% to its loans and its tax rate is 40%. Pearsons CFO estimates that the companys cost of common equity is 10%. What is Pearsons Weighted Average Cost of Capital (WACC)?

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