TIS Problem 10.08 (Cost or Common Equity and WACC) Question of Check My Work eBook Palencia Paints Corporation has a target capital structure of 25% debt and 75% common equity, with no preferred stock. Its before-tax cost of debt is 8%, and its marginal tax rate is 40%. The current stock price is Po - $23.00. The last dividend was Do - $3.00, and it is expected to grow at a 6% constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places. % b. WACC = 9 Check My Work 0 Icon Key