What is percy''s cost of common equity

What is percy''s cost of common equity

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Reference no: EM1314150

Cost of common equity

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 9%, and its tax rate is 40%. Percy's CFO estimates that the company's WACC is 9.96%. What is percy's cost of common equity ?

Reference no: EM1314150

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