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Percy Motors has a target capital structure of 45% debt and 55%common equity, with no preferred stock. The yield to maturity onthe company's outstanding bonds is 9%, and its tax rate is 40%.Percy's CFO estimates that the company's WACC is 13.90%. What isPercy's cost of common equity? Round your answer to two decimalplaces.

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Sixta Kovacek
Sixta KovacekLv2
29 Sep 2019

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