P9-12 (similar to) Question Help The effect of tax rate on WACC K Bell Jewelers wishes to explore the effect on its cost of capital of the rate at which the company pays taxes. The firm wishes to maintain a capital structure of 30% debt, 20% preferred stock, and 50% common stock. The cost of financing with retained earnings is 17%, the cost of preferred stock financing is 11%, and the before-tax cost of debt financing is 6%. Calculate the weighted average cost of capital (WACC) given a tax rate of 25% The firm's WACC is %. (Round to two decimal places.)