7. Problem 10.08 (Cost of Common Equity and WACC) EB 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 8% and its marginal tax rate is 10%. The current stock price is P - $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 round intermediate calculations. Round your answers to two dedmal places a. D. WACC