What is its cost of common equity and wacc

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Cost of Common Equity and WACC

Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. It's before-tax cost of debt is 11% and its marginal tax rate is 40%. The current stock price is P_0 = $21.00. The last dividend was D_0 = $3.00, and it is expected to grow at a 6% constant rate. What is its cost of common equity and its WACC? Round your answers to two decimal places. Do not round your intermediate calculations.

r_s = _______ %

WACC = _______ %

Reference no: EM131564286

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