DEF Company 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 $40\%.$ The current stock price is P$0=$ P$25\mathrm{.}00.$ The last dividend was D$0=$ P$2\mathrm{.}50,$ and it is expected to grow at a $4\%$ constant rate. What is the cost of common equity? And, what is the companys WACC?