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What is its cost of common equity and its WACC

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Question - Palencia Paints Corporation has a target capital structure of 30% debt and 70% common equity, with no preferred stock. It's before-tax cost of debt is 13%, and its marginal tax rate is 25%. The current stock price is P0 = $35.00. The last dividend was D0 = $2.50, and it is expected to grow at a 6% constant rate. What is its cost of common equity and its WACC?

Reference no: EM133175296

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