Click here to read the eBook: Basic Definitions Click here to read the eBook: The Cost of Retained Eamings, COST OF COMMON EQUITY AND WACC Palencia Paints Corporation has a target capital structure of 30% debt and 70% common equity, with no preferred stock. Its before-tax cost of debt is 10%, and its marginal tax rate is 40%. The current stock price is Po-$27.50. The last dividend was Do - $2.00, and it is expected to grow at a 5% 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 a.rs b. WACC