The WACC K Bell Jewelers wishes to explore the effect on its cost of capital...
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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 25% debt10% preferred stock, and 65% common stock. The cost of financing with retained earnings is 16%, the cost of preferred stock financing is 12%, and the before-tax cost of debt financing is 6%. Calculate the weighted average cost of capital (WACC) given a tax rate of 21% The firm's WACC is %. (Round to two decimal places)
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