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problem: Patton Paints Corporation has a target capital structure of 40 percent debt and 60 percent common equity, with no preferred stock. Its before-tax cost of debt is 12 percent, & its marginal tax rate is 40 percent. The current stock price is Po=$22.50. The last dividend was Do=$2.00, and it is expected to grow at a constant rate of 7 percent. find out its cost of common equity and its WACC?

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