205 Ch 10. Assignment - The Cost of Capital 5. Selving for the WACC The WACC IS ed as the contratto estrattoria WACC an appropriate contrary to act of avem Analyze the cost of capital of them Consider the case of Turnbull Co HIN Turnbul Constatat cure forme its cost of preferred to 12:24 14 Turnbull can raise all of sequity capitaron common quity, it will carry a cost of 16 It is current tax rate is 25 how muchas verage cost of WACOM TE capital by wwing new common stock trong the thronedas(Note your arms decimal places) 0.68% 01.03% 0.99 0.764 Turnos considering a project that resan.270,000.00 deb ata before-tax cost of $ 30,000,000 rate of 25% What we be the WACC for this project hotel 0.76% Turnbull Co. is considering a project that requires an initial investment of $270,000. The firm will raise the $270,000 in capital by issuing $100,000 of debit at a before-tax cost of 11.1%, $30,000 of preferred stock at a cost of 12.2% and 5140,000 of equity at a cost of 14.7%. Their faces a tax rate of 25%. What will be the WACC for this project? (Note: Round your intermediate calculations to three decimal places.) Consider the case of Kuhn Ce. Kuhn Co. is considering a new project that will require an initial investment of 545 million. It has a target capital structure of debt, 2 preferred stock, and 63% common equity, Kuhn has noncailable bonds outstanding that mature in 15 years with a face value of $1,000, an annual coupon rate of 11%, and a market price of $1555.38. The yield on the company's current bonds is a good approximation of the yield on any new bonds that issues. The company can sell shares of preferred stock that pay an annual dividend of 39 at a price of 592.25 per share. Kuhn does not have any retained earnings available to finance this project, so the firm will have to see new common stock to help hind it. 16 common stock is currently selling for $22.35 per share, and it is expected to pay a dividend of $1.36 at the end of next year. Rotation costs will represent 3% of the funds raised by issuing new common stock. The company projected to grow at a constantiate of 9.2%and they face a tax rate of 25%. What will be the WACC for this project? (Note: Round your intermediate calculations to two decimale)