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 P$0=$ $$33\mathrm{.}00.$ The last dividend was D$0=$ $$2\mathrm{.}00,$ 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.

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WACC $=$

$\%$The Paulson Company's year$-$end balance sheet is shown below. Its cost of common equity is $17\%,$ its before$-$tax cost of debt is $11\%,$ and its marginal tax rate

is $25\%.$ Assume that the firm's long$-$term debt sells at par value. The firm's total debt, which is the sum of the company's short$-$term debt and long$-$term debt,

equals $$1,177.$ The firm has $576$ shares of common stock outstanding that sell for $$4\mathrm{.}00$ per share.

Assets

Liabilities And Equity

Calculate Paulson's WACC using market$-$value weights. Do not round intermediate calculations. Round your answer to two decimal places.