Palencia Paints Corporation has a target capital structure of $30\%$ debt and $70\%$ 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=$$$32\mathrm{.}50.$ The

last dividend was $D_0=$$$3\mathrm{.}00,$ 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.

$r_s=$

WACC $=$