Question: 8. Search this course Ch 10- End-of-Chapter Problems - The Cost of Capital X Back to Assignment Study Tools Attempts Average / 2 ons 8.

Search this course Ch 10- End-of-Chapter Problems - The Cost of Capital X Back to Assignment Study Tools Attempts Average / 2 ons 8. Problem 10.08 (Cost of Common Equity and WACC) cess Tips eBook ess Tips 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 25%. The current stock price is Po = $27.50. 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? Do not round intermediate calculations. Round your answers to two decimal places. r's = WACC = Grade it Now Save & Continue Continue without saving 0 1:51 hp

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