Analyze the cost of capital situations of the following cormpany cases, and answer the specific questions that finance profestionals need to address. Consider thn case of Turmbull Co. Turnhul Co, has a target capital structure of sges debt, 6\% preferred stock, and 36% common equity, it has a before-tax coet of debt of 8.2%, and its cost of preferred stock is 9.3%. If Turnbull can raies all of its equity capital from retained earnings, its coit of conmen equity will be 12.4\%5, However, if it is necessary to raise new cocnmon equity, it will carry a coet of 14.2 wh. capital by ietwing new common steck instead of raieing tha funds through retained earnings? (Whotes Do not round your intermediste calcilations) 0,5926 0.65% 0.75% a.sses rate of 40%, what will be the wacc for this project? (Wotes Do not round witermediate colcilatione,) 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 debt at a belore-tax cost of 10.2%,$30,000 of preferred stock at a cost of 11.4\%, and $140,000 of equity at a cost of 14.3%. The firm faces a tax rate of 40%. What will be the Wacc for this project? (Wotes Do not round internediate calculations.) Consider the case of Kultu Co. does not inar any flotation wets when issuing debt and preferred atock. cornman stock is carretly selling for $22.35 per chare, and it is expected to pay a dividend of $2.78 at the end of next year. Flotation costs will rate of 10. Determine what kutin Companys wacc will be for thisproject. Turnbull Ca. 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 debt at a before-tax cost of 10.2%,$30,000 of preferred stock at a cost of 11.4%, and $140,000 of equity at a cost of 14.3\%. The firm faces a tax rote of 40%. What will be the wacc for this project? ( Wote: Do not round intermedlate calculations.) Constder the case of Kulin Co. Kuhn co. is considering a new project that will require an initial imvestment of $20 million. It has a target copital structure of 45% debt, 4% prefcred stocky and 51% common equity, Kuhn has noncallable 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 \$1,555.38, The yield on the company's arrent boods is a good approximation of the yield on any new bonds that it bsues the corrpany an sell ahares of preferred stock that pay an annual dir does not inour any flotation wosts when issuing delt and preferred stock. note of 40, Determine what Kutin Companya wacc will be for this project
