What is pearson cost of common equity

Assignment Help Financial Management

Reference no: EM132016341

Pearson 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%. Pearson's CFO estimates that the company's WACC is 13.00%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM132016341

Questions Cloud

What type of queries benefit from parallel processing : What type of queries benefit from parallel processing? What are the benefits of parallel databases?

What is such strategy being referred to in the markets : What is such a strategy being referred to in the markets?

Design an implementation plan for preferred intervention : Describe self-managed work groups and the situations for which they are best suited - What changes would you recommend

Explain how materiality is defined by both fasb and iasb : Explain how "materiality" is defined by both FASB and IASB. The concepts statements provide several examples in which specific quantitative materiality.

What is pearson cost of common equity : Pearson's CFO estimates that the company's WACC is 13.00%. What is Pearson's cost of common equity?

Risk of default increases with the use of debt in financing : In general, the risk of default increases with the use of debt in financing. A test that determines if the original issue discount (OID) rules apply is the:

Which forms of power do you consider to be the strongest : Please think about the last serious conflict you had. Which approach did you take to resolve it? Did your conflict resolution style work well?

What would the code look like to implement this : You want tocreatea script that will determine if users were viewing a site before yours and if so, send an alert message to the users to tell them what Web site

Discuss what a balanced scorecard is : Discuss what a balanced scorecard is and how it might benefit your company. Identify and discuss the types of information that would be included in a balanced.

User Account

All Pages