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 115, and its marginal tax rate is 25%. The current stock price is Po - $23.50. The last dividend was Do = $2.25, 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