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 10%, and its tax rate is 35%. Pearson's CFO estimates that the company's WACC is 9.8%. What is Pearson's cost of common equity? 12% 14.75% 09.67% 6.33% 9.4%