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Palencia Paints Corporation has a target capital structure of 4 5 % debt and 5 5 % common equity, with no preferred stock. Its before
Palencia Paints Corporation has a target capital structure of debt and common equity, with no preferred stock. Its beforetax cost of debt is and its marginal tax rate is The current stock price is P $ The last dividend was D $ and it is expected to grow at a constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places.
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