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Palencia Paints Corporation has a target capital structure of 4 0 % debt and 6 0 % common equity, with no preferred stock. Its before

Palencia Paints Corporation has a target capital structure of 40% debt and 60% common equity, with no preferred stock. Its before-tax cost of debt is 13%, and its marginal tax rate is 25%. The current price is P0=$24.50. The last dividend was D0=$3.75, and it is expected to grow at a 4% constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round answers to two decimal places.
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