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 9%, and its marginal tax rate is 25%. The current stock price is Po - $28.00. The last dividend was Do - $2.75, 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. Ts % WACC = %