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 12%, and its marginal tax rate is 40%. The current stock price is Po $25.50. The last dividend was Do $2,00, and it is expected to grow at a la constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places b. WACC =