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 10%, and its marginal tax rate is 25%. The current stock price is Po = $29.50. The last dividend was Do round intermediate calculations. Round your answers to two decimal places. rs = WACC = % % = $2.75, and it is expected to grow at a 7% constant rate. What is its cost of common equity and its WACC? Do not