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 9%, and its marginal tax rate is 40. The current stock price is Po - $20.50. The last dividend was Do = $4.00, and it is expected to grow at a 7% constant rate. What is its cost of common equity and its WACC? Round your answers to two decimal place. Do not found your intermediate calculations at- b. WACC - WACC The Pawison Company's year end balance sheet is shown below. Its cost of common equity is 14%, is before-tax cost of debt is 8%, and its marginal tax rate is 40%. Assume that the firm's long-term debt sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1,170. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Assets Liabilities And Equity Cash $ 120 Accounts payable and $10 accruals Accounts receivable 240 Short-term debt so Inventories 360 Long-term debt 1,120 Plant and equipment, not 2,160 Common equity 1,700 Total assets $2,880 Totat liabilities and equity $2,880 Calculate Pawison's WACC using market value weights, Round your answer to two decimal places. Do not round your intermediate calculations. 96