Percy motors has a target capital structure of 40 debt and

Reference no: EM13602056

Percy Motors has a target capital structure of 40% debt and 60% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 12%, and its tax rate is 40%. Percy's CFO estimates that the company's WACC is 14.90%. What is Percy's cost of common equity? Round your answer to two decimal places

Reference no: EM13602056

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