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 14?%, the cost of preferred stock financing is 12?%, and the? before-tax cost of debt financing is 11?%. Calculate the weighted average cost of capital ?(WACC?) given a tax rate of 30 %. The? firm's WACC is %?. ?(Round to two decimal? places.)