7. Problem 10.08 (Cost of Common Equity and WACC) eBook Palencia Paints Corporation has a target capital structure of 45% debt and 55% common equity, with no preferred stock. Its before-tax cost of debt is 12%, and its marginal tax rate is 25%. The current stock price is Py = $23.00. The last dividend was De = $2.00, and it is expected to grow at a 5% constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places WACC - Grade It Now Save & Continue Continue without saving 30 A DOO F 3 $ 4 % 5 & 7 00* 6 9 BE 0 E R T Y U 0 P D F G H J K .