You are given the following data for a company cost of debt = 8% cost of retained earnings = 12% cost of new common equity = 14% tax rate = 30% and retained earnings = $1000 The firms target capital structure is 40% debt and 60% common equity. Compute the following A. Retained earnings break point B. WACC below the RE break point C. WACC above the RE break point The cost of debt for firm XYZ is 6% it's tax rate is 40% The cost of retained earnings is 12% and the cost of external common equity is 14% Retained earnings is $5000 The target capital structure calls for 45% debt and 65% equity compute the following A. Retained earnings break point B. WACC below the RE break point C. WACC above the RE break point