c. 10-8 What is Evanec's cost of new common stock, r? COST OF COMMON EQUITY AND WACC 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 25%. The current stock price is P. = $22.00. The last dividend was D. = $2.25, and it is expected to grow at a 5% constant rate. What is its cost of common equity and its WACC? La hore Its cost of common