Palencia Paints Corporation has a target capital structure of 45% debt and 55% common equity, with no preferred stock. Its before-tax cost of debt is 10%, an its marginal tax rate is 25%. The current stock price is P0=$30.50. The last dividend was Do$3.75, and it is expected to grow at a 5% constant rate. What is its cost of common equily and its WACC? Do not round intermediate calculations. Round your answers to two decimal places. r1=WACC=