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 8%, an its marginat tax rate is 25%. The current stock price is P0=$35.00. The last dividend was D0=$3.50, and it is expected to grow at a 6%, constant rate. Whi is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places