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 $10\%,$ and

its marginal tax rate is $25\%.$ The current stock price is $P_0=$$$30\mathrm{.}00.$ The last dividend was $D_0=$$$2\mathrm{.}75,$ and it is expected to grow at a $6\%$ constant rate. What

is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places.

$r_s=$

WACC $=$

$\%$

Please show work and how you got to the correct answer