Back to Assignment Attempts 1 Average 1/2 9. Problem 10.08 (Cost of Common Equity and WACC) 0 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 9%, and its marginal tax rate is 25%. The current stock price is Po = $24.50. The last dividend was Do = $2.00, and it is expected to grow at a 4% constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places. 0% WACC = % Grade it Now Save & Continue Continue without saving