Pearsons cfo estimates that the companys wacc is 1400 what


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 8%, and its tax rate is 40%. Pearson's CFO estimates that the company's WACC is 14.00%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Pearsons cfo estimates that the companys wacc is 1400 what
Reference No:- TGS02833838

Expected delivery within 24 Hours