Problem 10.08 Cost of Common Equity and WACC) Question 6 of 20 > Check My Work (3 remaining) eBook 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 9%, and its marginal tax rate is 25%. The current stock price is Po - $27.50. The last dividend was Do = $3.75, and it is expected to grow at a 5% constant rate. What is its cost of common equity and its WACC? Do not round Intermediate calculations. Round your answers to two decimal places. % WACO % Check My Work (3 remaining) 1690 Egg