5. Problem 10.08 (Cost of Common Equity and WACC) Palencia Paints Corporation has a target capital structure of \25 debt and \75 common equity, with no preferred stock. Its before-tax cost of debt is \8, and its marginal tax rate is \25. The current stock price is \\( P_{0}-\\$ 27.00 \\). The last dividend was \\( D_{0} \\) in \\( \\$ 2.50 \\), and it is expected to grow at an \8 constant rate. What is its cost of common equity and its Whice? Do not round intermediate calculations. Round your answers to two decimal places. \\[ \\begin{array}{l} r_{\\mathrm{s}}= \\\\ \\text { WACC - } \\end{array} \\] \ Continue without saving