2. Problem 10.08 (Cost of Common Equity and WACC) eBook Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its before tax cost of debt is 3%, and its marginal tax rate is 10%. The current stock price is Po - $26.50. The last dividend was - $3.25, and it is expected to grow at a constant rate. What is its cost of common equity and its WACC Do not found intermediate calculations. Round your answers to two decimal places % b. WACC - %