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 prices Po= $33.00. The last dividend was Do = $4.00, 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=

WACC=