Percy Motors Has A Target Capital Structure Of 45% Debt And 55%

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. 00%. What is Percy’s cost of common equity? Round your answer to two decimal places.