problem 10.03 cost of common equity

3. Problem 10.03 (Cost of Common Equity) eBook Pearson Motors has a target capital structure of 35% debt and 65% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is #%, and its tax rate is 40%. Pearson's CFO estimates that the company's WACC IS 11.40% What is Pearson's cost of common equity? Do not round Intermediate calculations, Round your answer to two decimal places