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Business, 25.03.2020 04:56 mtzann1568

Pearson Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 8%, and its tax rate is 40%. Pearson's CFO estimates that the company's WACC is 12.80%. What is Pearson's cost of common equity

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