Palencia Paints Corporation has a target capital structure of $35\%$ debt and $65\%$ 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$0=$ $$34\mathrm{.}50.$ The last dividend was D$0=$ $$2\mathrm{.}75,$ and it is expected to grow at a $5\%$ constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places.