Question: will thumb up please help. do not need workings Palencia Paints Corporation has a target capital structure of 30% debt and 70% common equity, with

will thumb up please help. do not need workings

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 8%, and its marginal tax rate is 40%. The current stock price is Po = $30.00. The last dividend was Do $3.50, and it is expected to grow at a 7% constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places. a. rs = % b. WACC = %

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