palencia paints corpor

Problem 10.08 (Cost of Common Equity and WACC) Question 6 of 20 Check My Work (3 remaining) 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 10%, and its marginal tax rate is 25%. The current stock price is Po - $30.00. The last dividend was Do - $2.25, and it is expected to grow at an 8% 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 - % Check My Work (3 remaining) Problem 10.08 (Cost of Common Equity and WACC) + Question of 20 302 4/26 ho