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 o 30% de 15% preferred stock earnings is 16%, the cost of preferred stock financing is 9%, and the before tax cost capital (WACC) given a tax rate of 40%. and 55% common stock. The cost of financing with retained of debt financing 67%. Calculate the weighted average cost of The firm's WACC is [1%. (Round to two decimal places.)