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 =\$29.00 . The last dividend was D 0 =\$3.00 , 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 .