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Attempts: Score: 12 8. Problem 10.08 (Cost of Common Equity and WACC) cBook Palencia Paints Corporation has a target capital structure of 35% debt and
Attempts: Score: 12 8. Problem 10.08 (Cost of Common Equity and WACC) cBook Palencia Paints Corporation has a target capital structure of 35% debt and 65%. common equity, with no preferred stock. Its before tan cost of debt is e%, and its marginal tax rate is 25%. The current stock price is Po - $23.00. The last dividend was Do - $2.50, 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 = Save & Continue Continue without saving
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