Palencia Paints Corporation has a target capital structure of 30% debt and 70% common equity, with no preferred stock. Its before-tax cast of debt is 13%, and its marginal tax rate is 25%. The current stock price is P0=$32.50. The last dividend was D0=$2.00, and it is expected to grow at a 4% constant rate. What is its cost of common equity and ins WACC? Do not round intermediate calculations. Round your answers to two decimal places. f3=WACC=% Olsen Outfitters Inc. believes that its optimal capital structure consists of 70% common equity and 30% debt, and its tax rate is 25%. Olsen must raise additional capital to fund its upcoming expansion. The firm will have $4 million of retained earnings with a cost of r3=10%. New common stock in an amount up to $6 million would have a cost of re= 11.5\%. Furthermore, Olsen can raise up to $3 million of debt at an interest rate of rddd=10% and an additional $4 million of debt at rdd=14%. The CFO estimates that a proposed expansion would require an investment of $7.8 million. What is the WACC for the last dollar roised to complete the expansion? Round your answer to two decimal places. Jarett \& Son' common stock currently trades at $27,00 a share. It is expected to pay an annusi dividend of $1.25 a share at the end of the year (D1=$1.25), and the constant growth rate is 39 a year: a. What is the company's cost of common equity if all of its equity comes from retained eamings? Do not round intermediate calculations. Round your answer to two decimal places. % b. If the company issued new stock, it would incur a 13% fotation cost. What would be the cost of equity from new stock? Do not round intermediate calcuiations. Round your answer to two decimal places. \%