WACC company, because, following

fishmarket

Schweser hit me with a WACC problem where they gave me the following

Cost of equity is estimated to be 13.5% if the company issues new common stock.
Cost of retained earnings is estimated to be 12%.

I got it wrong because I used 13.5 as cost of equity and they said I should have used 12%

Its a bit sneaky. Has anyone else seen the equity component given this way?