The effect of tax rate on WACC K. Bell Jewelers wisties to explore the effect on its cost of capital of the rale at which the compary pays taxes. The firm wishes to maintain a capital structure of 40% debt, 10% preferred stock, and 50% common stock. The eost of financing with retaked eamings is 18%, the cost of preferred stock financing is 9%, and the before-tax cost of debt financing is 7\%. Calculate the weighted average cost of capial (WACC) given a tax rate of 35%. The firm's WACC is \%. (Round to two decmal places)