WACC k bell jewlers wishes to explore the effect on its cost of capital of the rate at which the company psys taxe

s. the firm whishes to maintain a capital structure of 40% debt, 10% preferred stock and 50% common stock . the cost of financing with retained earnings is 10% the cost of preferred stock financing is 8% and the before tax cost of debt financing is 6% . Calculate the weighted average cost of capital WACC given the tax rate assumption in parts a to c

tax rate =40%

tax rate =35%

tax rate =25%