QUESTION 3 What is the expected return if stock returns followed this historical distribution: +15%, -5%, -20%, 12%, and +15%? 2.10% 3,40% 1.2596 3.25% QUESTION 4 Pearson Motors has a target capital structure of 50% debt and 50% common equity, with no preferred stock. The yield to maturity or company's outstanding bonds is 9%, and its tax rate is 40%. Pearson's CFO estimates that the company's WACC IS 10.50%. What is Pearson's cost of common equity? 14.0% -k Save and Submit to save and submit. Click Save All Answers to save all answers