Analyze the cost of capital situabioes of the following company cases, and ansmer the specific questions that finance professionals need to address. Consider the case of Turnbult Co. Tumbuft C., has a taroet cabital structure of 58% debt, 6% preferred stock, and 36% common equity, it has a before-tax cost of dete of 8,24, and its cost of preferred stock is 9,3%. If Tumbeilf can raise all of its equily capital from retained earnings, its cost of common equity wal be 12.4\%. Howeree, if it is necessary to raise new common eguity, it will carry a cost of 14.2%. If its current tax rate is 25%, how much higher wil tumbedl's weighted average cost of capital (Wacc) be if it has to rabe additional commen equity capital by issuing new corrmon stock instead ef raising the funds through retained earnings? (Note: flound your intermediate calculations to twe decimal placess 0.38% 0.65% 0.61% Turmbua co. is consldering a project that requires an initial imvestment of $270,000. The firm will rase the $270,000 in capital by ksuine $100,000 of rate of 25%. What wit the the wace for this profect? (Note: Hound your intermedlate cotcutabions to three decinal placess.) Concider the case of Kahn Co. stock, and 51% commien equity. Whe has noncallatle bends outstanding that mature in five vears aith a face value of $1,000, an annual coupon rate of 10%, and a market price of $1,050,70, The yeld on the companrs current bonds is a good approximation of the reld on amy new bonds that it issues, The compary can sell shares of pecferred stock that pay an annual dividend of 59 at a peice of s95. 70 per share. Wihn does not have any retained earrings availatde to finance wis project, so the firm wa have to issoe new cornmon stock to help fund it. Its rate 4.25%. What will be the Whcc for this project? (Noter flecind your insermediate calculations to two decinal glaces.)