Patton Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its before-tax cost of debt is 13% and its marginal tax rate is 40%. The current stock price is P0 = $32.00. The last dividend was D0 = $2.50, and it is expected to grow at a constant rate of 6%. What is its cost of common equity and it's WACC? Round your answers to two decimal places. a. rs = b. WACC =