Analyze the cost of capital situations of the following company cases, and answer the specific questions that finance professionals need to address. Consider the case of Turnbull Co. Turnbull Co, has a target capital structure of 45% debt, 4%6 preferred stock, and 51% common eqiaty. It has a beforestax cost of debt of 11.1 Fo, and its cost of preferred stock is 12.2% If Tumbull can raise all of its equity capital from retained earnings, its cost of common equity will be 14.75. However, if it is necessary to raise new common equity, it will carry a cost of 16.8%. If its current tax rate is 25%, how much higher will Tumbull's weighted average cost of capital (WACC) be if it has to raise additional exmrsail equity capital by issuing new common stock instead of raising the funds through retained earnings? (Note: Round your intermediate calcilations ta two decimal places.) 1.39% 1.23% 1.34% 1.07% Turnbull Co. 15 considering a project that requires an initial imyestment of $270,000. The firm will raise the $270,000 in capital by 1 ssaing $100,000 of debt at a before-tax cost of 9.6%,$30,000 of preferred stock at a cost of 10.7%, and $140,000 of equity at a cost of 135%. The firm faces fax 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 Co. Kuhn Co. 15 considering a new project that will require an intial irivestment of $4 million. It has a target copital structure of 35% debt, 29 preferred stock, and 63% common equity. Kuhn has noncallable bonds-outstanding that mature in frve years with a face value of $1,000, an anrial coupon rate of 10%, and a market price of $1,050:76. The yield on the compony's current bonds is a good approximation of the yield on any new bonds that it issues. The company can sell shares of preferred stock that pay an annual dividend of $8 at a price of $92.25 per share. Kuhn does not have any retained earnings available to finance this project, so the firm will have to nswe new common stock to heip fund it. its comamon stock is currently selling for $22.35 per share, and it is expected to pay a dividend ot $1.36 at the end of next year. Hetatian coats will represent 8% of the funds raised by is suing new common stock. The company is projected to grow at a constant rate of 9.27, and ther face a tax tate ef 25 . What will be the WACC for this project? (Note: Round your intermediate calculations to two deartal places.)