Question: Attempts: Keep the Highest: 71 3. Problem 10.03 Click here to read the eBook: The Cost of Retained Earnings, r's COST OF COMMON EQUITY Pearson

Attempts: Keep the Highest: 71 3. Problem 10.03 Click here to

Attempts: Keep the Highest: 71 3. Problem 10.03 Click here to read the eBook: The Cost of Retained Earnings, r's COST OF COMMON EQUITY 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 12%, and its tax rate is 40%. Pearson's CFO estimates that the company's WACC is 14.50%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. % Grade it Now Save & Continue Continue without saving

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