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5. Problem 10.08 (Cost of Common Equity and WACC) eBook Palencia Paints Corporation has a...

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5. Problem 10.08 (Cost of Common Equity and WACC) eBook Palencia Paints Corporation has a target capital structure of 45% debt and 55% 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 P - $21.00. The last dividend was D. - $3.25, and it is expected to grow at a 5% constant rate. What is its cost of common equity and its WACC Do not round intermediate calculations. Round your answers to two decimal places 9 b. WACC - Grade it Now Save & Continue Continue without saving

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