Pearson Motors has a target capital structure of 35% debt and 65% common equity, with no preferred stock. The yield to m
Posted: Sat Feb 26, 2022 9:09 am
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 10%, and its tax rate is 25%.
Pearson's CFO estimates that the company's WACC is 10.30%. What is
Pearson's cost of common equity? Do not round intermediate
calculations. Round your answer to two decimal places.
65% common equity, with no preferred stock. The yield to maturity
on the company's outstanding bonds is 10%, and its tax rate is 25%.
Pearson's CFO estimates that the company's WACC is 10.30%. What is
Pearson's cost of common equity? Do not round intermediate
calculations. Round your answer to two decimal places.