eBook Palencia Paints Corporation has a target capital structure of 30% debt and 70% common equity, with no preferred stock. Its before-tax cost of debtis , and its marginal tax rate is 40%. The current stock price is Po $25.50. The last dividend was Do = $3.75, and it is expected to grow at an a constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places % b. WACC