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please help! i cant figure this one out! Problem 10.08 Question 4 of 4 Check My Work (2 remaining) Click here to read the eBook:

please help! i cant figure this one out! image text in transcribed
Problem 10.08 Question 4 of 4 Check My Work (2 remaining) Click here to read the eBook: Basic Definitions Click here to read the eBook: The Cost of Retained Earnings, 's COST OF COMMON EQUITY AND WACC 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 = $29.50. The last dividend was Do = $3.25, and it is expected to grow at a 4% constant rate. What is its cost of common equity and its WACC? Round your answers to two decimal places. Do not round your intermediate calculations. %% b. WACC 0%

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