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eBook 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

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eBook 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 8%, and its marginal tax rate is 25%. The current stock price is Po - $27.00. The last dividend was Do = $2.75, and it is expected to grow at constant rate. What is its cost of common equity and its WACC? Do not round Intermediate calculations. Round your answers to two decimal places WACC

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