Percy motors has a target capital structure of 30 debt and


Percy 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 40%. Percy's CFO estimates that the company's WACC is 14.30%. What is Percy's cost of common equity?

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Financial Management: Percy motors has a target capital structure of 30 debt and
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