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 = _______ %