KSS corporation uses 40% debt and 60% equity to finance new capital expenditures. The before tax cost of debt is 5%, the marginal tax rate is 40%, the cost of retained earnings is 12% and the cost of a new stock issue is 14%. What is the WACC if a new stock issue is used?

Answer rating: 100% (QA)

To calculate the Weighted Average Cost of Capital ... View the full answer