6.) Pearson Motors has a target capital structure of 30% debt and 70% common equity, with no preferred stock. The yield
Posted: Tue Nov 16, 2021 8:24 am
6.) Pearson Motors has a target capital structure of 30% debt
and 70% common equity, with no preferred stock. The yield to
maturity on the company's outstanding bonds is 11%, and its tax
rate is 25%. 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.
and 70% common equity, with no preferred stock. The yield to
maturity on the company's outstanding bonds is 11%, and its tax
rate is 25%. 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.