Question: Attente Keep the Highest / 1 7. Problem 10.03 (Cost of Common Equity) ebook Pearson Motors has a target capital structure of 35% debt and

Attente Keep the Highest / 1 7. 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 honds is 11%, and its tax rate is 25%. Pearson's Croestimates that the company's WACC is 11.60% What is Pharan's cost of common quity? Do not round Intermediate Criculations, Round your answer to two decimal places

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