Pearson Motors has a target capital structure of $40\%$ debt and $60\%$ common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is $9\%,$ and its tax rate is $25\%.$ Pearson's CFO estimates that the company's WACC is $11\mathrm{.}60\%.$ What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.

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