eBook Palencia Paints Corporation has a target capital structure of 25% debt and 75% o common equity, with no preferred stock. Its before-tax cost of debt is 10%, and its marginal tax rate is 25%. The current stock price is Po = $34.00. The last o dividend was Do = $3.00, and it is expected to grow at a 7% constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places. Ts = % WACC = %