14. Problem 10.08 (Cost of Common Equity and WACC) E eBook Palencia Paints Corporation has a target capital structure of 30% debt and 70% common equity, with no preferred stock. Its before-tax cost of debt is 11%, and its marginal tax rate is 25%. The current stock price is Py- $32.00. The last dividend was Da $3.50, and it is expected to grow at an 8% constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places. fsm % WACC - Grade it Now Save & Continue Continue without saving