Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity,...
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Accounting
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 99 and its marginal tax rate is 40%. The current stock price is P, = $30.50. The last dividend was Do = $2.00, 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 %
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