The Cost of Capital: Weighted Average Cost of Capital common stock, then the cost of retained earnings is used in the firm's WACC calculation. However, if the firm will have to issue new common stock, the cost of new common stock should be used in the firm's wACC calculation. cost of equity is $12\mathrm{.}8\%$ for old equity, $r_s,$ and $13\mathrm{.}1\%$ for new equity, $r_e.$ What is the firm's weighted average cost of capital $($ WACC ${?}_1)$ if it uses retained earnings as its source of common equity? Do not round intermediate calculations. Round your answer to two decimal places.

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What is the firm's weighted average cost of capital $($ WACC ${?}_2)$ i it has to issue new common stock? Do not round intermediate calculations. Round your answer to two decimal places.

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