Click here to read the eBook: Basic Definitions Click here to read the eBook: The Cost of Retained Earnings, COST OF COMMON EQUITY AND WACC 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 11%, and its marginal tax rate is 40%. The current stock prices Po - $26.50. The last dividend was Do - $4.00, and it is expected to grow at a 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. b. WACC Click here to read the eBook: Basic Definitions WACC Olsen Outfitters Inc, believes that its optimal capital structure consists of 70% common equity and 30% debt, and its tax rate is 40%. Olsen must raise additional capital to fund its upcoming expansion. The firm will have $2 million of retained earnings with a cost of -15%. New common stock in an amount up to $6 million would have a cost of i. - 19% Furthermore, Olsen can raise up to $4 million of debt at an interest rate of -11% and an additional $3 milion of debt - 12%. The CFO estimates that a proposed expansion would require an investment of $3.6 million. What is the WACC for the last detar raised to complete the expansion Round your answer to two decimal places