1 pts Question 14 Zone Packaging has determined that its before-tax cost of debt, rd, is 5 percent, its cost of retained earnings, re, is 9 percent, and its cost of new common equity, re, is 12 percent. When it finances new capital budgeting projects, Zone raises the funds using 40 percent debt and 60 percent common equity. What is Zone's weighted average cost of capital (WACC) if it must issue new common stock to raise funds? Zone's marginal tax rate is 30 percent. 6.8% 4.8% 6.0% 8.6% 7.0% Question 15