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Pearson Motors has a target cepital structure of 35% debt and 65% common equity, with no preferred stock. The yieid to maturity on the company's

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Pearson Motors has a target cepital structure of 35% debt and 65% common equity, with no preferred stock. The yieid to maturity on the company's outstanding bonds is 10\%, and its tax rate is 25%. Pearson's CFO estimates that the company's WACC is 11.20%. What is Pearson's cost of common equity? Do not round internediate calculations. Round your answer to two decimal placer

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