Problem:
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 8%, and its tax rate is 40%. Percy's CFO estimates that the company's WACC is 14.50%.
Required:
Question: What is Percy's cost of common equity?
Note: Show step by step solution and I also want complete calulation.