Business, 02.03.2020 17:32 cchave9563

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. Its before-tax cost of debt is 8%, and its marginal tax rate is 40%. The current stock price is . The last dividend was , and it is expected to grow at a 5% constant rate. What is its cost of common equity and its WACC?

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