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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

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 8%, and its marginal tax rate is 40%. The current stock price is P₀ = $30. The last dividend was D₀ = $2.4 and It is expected to grow at a 7% constant rate. What is its weighted average cost of capital (WACC) without issuing new common stock?

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