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rs= % WACC = % Palencia Paints Corporation has a target capital structure of 45% debt and 55% common equity, with no preferred stock. Its

rs= % WACC = %

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 12%, and its marginal tax rate is 25%. The current stock price is Po = $4.00, 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. WACC $30.00. The last dividend was Do =

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