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Business, 15.07.2019 23:30 alex7881

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 8%, and its marginal tax rate is 25%. the current stock price is p0 = $29.00. the last dividend was d0 = $2.25, 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.

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