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 20% debt 15% preferred stock, and 65% common stock. The cost of financing with retained earnings is 15%, the cost of preferred stock financing is 9%, and the before-tax cost of debt financing is 9%. Calculate the weighted average cost of capital (WACC) given a tax rate of 30% The firm's WACC is 12.85%. (Round to two decimal places)