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4. Problem 10.08 (Cost of Common Equity and WACC) Palencia Foration has a target capital structure of 75% debt and 75% common equity, with no
4. Problem 10.08 (Cost of Common Equity and WACC) Palencia Foration has a target capital structure of 75% debt and 75% common equity, with no preferred stock tits before-tax cost of debt is 11%, and its marginal tax rate is 25\%. The ourrent stock price is P0=$34.00. The last cividend was D0=32.50, and it is expected to grow at an 8% constant rate. What is its cost of common equify and its Wacch Do not cound intermediate calculations. Round your arswers to two decimal plsces, r1=of4WACE=ol2
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