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The companys outstanding bonds is 11 and its tax rate is

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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 on the company's outstanding bonds is 11%, and its tax rate is 40%. Percy's CFO estimates that the company's WACC is 13.80%. What is Percy's cost of common equity?

Reference no: EM13486175

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