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 9%, and its marginal tax rate is 25%. The current stock price is Po - $28.50. The last dividend was Do = $2.75, 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 % @ WACC %