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Palencia Paints Corporation has a target capital structure of 30% debt and 70% common equity,...

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Palencia Paints Corporation has a target capital structure of 30% debt and 70% common equity, with no preferred stock, lts before-tax cost of dekt is lis, and its. marginal tax rate is 25%. The current stock price is P0=$27,50. The last dividend was D0$2.00, and it is expected to grow at an 8% conatart rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two dedimal places. r3=WACC=

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