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    Cost of common equity

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    Percy Motors has a target capital structure of 40 percent debt and 60 percent common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 9 percent, and its tax rate is 40 percent. Percy's CFO estimates that the company's WACC is 9.96 percent. What is Percy's cost of common equity?

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    https://brainmass.com/business/bond-valuation/cost-of-common-equity-220536

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    The solution explains how to calculate the cost of common equity

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