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) Pearson motors has a target capital structure of 30% debt and 70% common equity, with no preferred stock. The yield to maturity on the
- ) Pearson motors has a target capital structure of 30% debt and 70% common equity, with no preferred stock. The yield to maturity on the companys out standing bonds is 9%, and its tax rate is 40%. Pearsons CFO estimates that the companys WACC is 10.50%. What is Pearsons cost of common equity?
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Foundations Of Financial Management
Authors: Stanley B Block, Geoffrey A Hirt
12th Edition
0073295817, 9780073295817
