The 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 30% debt, 10% preferred stock, and 60% common stock. The cost of financing with retained earnings is 14%, the cost of preferred stock financing is 11%, and the before-tax cost of debt financing is 8%. Calculate the weighted average cost of capital (WACC) given a tax rate of 21%. The firm's WACC is \%. (Round to two decimal places.) Flotation costs and the cost of debt Currently, Warren Industries can sell 10-year, \$1,000-par-value bonds paying annual interest at a 9% coupon rate. Because current market rates for similar bonds are just under 9%, Warren can sell its bonds for $1,070 each: Warren will incur flotation costs of $35 per bond. The firm is in the 26% tax bracket. a. Find the net proceeds from the sale of the bond, Nd. b. Calculate the before-tax and after-tax costs of debt. a. The net proceeds from the sale of the bond, Nd, is $ (Round to the nearest dollar.)