Palencia Paints Corporation has a target capital structure of 25% debt and 75% common equity, with no preferred stock. Its beforetax cost of debt is 8%, and its marginal tax rate is 25%. The current stock price is P0=$33.00. The last dividend was D0=$3.25, 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. rs=WACC=%%