COST OF COMMON EQUITY AND WACC Palencia Paints Corporation has a target capital structure of 25% debt and 75% common equity, with no preferred stock. Its before-tax cost of debt is 10%, and its marginal tax rate is 40%. The current stock price is Po-$30.00. The last dividend was Do - $2.00, and it is expected to grow at a 5% constant rate. What is its cost of common equity and its WACC7 Round your answers to two decimal places. Do not round your intermediate calculations. 9% b. WACC = %