FRUMICU. ILUSEUL LUMOn Equity and WACC) Question 6 of 7 Check My Work eBook Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its before-tax cost of debt is 13%, and its marginal tax rate is 40%. The current stock price is Po = $22.00. The last dividend was Do = $3.75, 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, a.rs % b. WACC = %