Attempts: Keep the Highest: / 2 5. Problem 10.08 (Cost of Common Equity and WACC) eBook Palencia 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 12%, and its marginal tax rate is 25%. The current stock price is Po = $24.00. The last dividend was Do = $2.25, 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 Grade it Now Save & Continue Continue without saving llo 22