ANSWER ASAP!! has a target capital structure of 35% debt, 2% preferred stock, and 63% 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 $1555.38. The yield on the company'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 issue new common stock to help fund it. Its common stock is currently selling for $33.35 per share, and it is expected to pay a dividend of $1.36 at the end of next year. Flotation costs will represent 3% of the funds raised by issuing new common stock. The company is projected to grow at a constant rate of 8.7%, and they face a tax (Note: Round your intermediate calculations to two decimal places.) rate of 25%. What will be the WACC for this project? 11.20%

Consider the case of Kuhn Co. Kuhn Ca. is considering a new project that will require an initial investment of $20 million, it has a target copital structure of 35% debt, 2% preferred stock, and 63% common equity. Kuhn has noncaliable 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 yleid on any new bonds that it lasues. 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 issue new common stock to help fund it. Its common stock is currently seling for $33.35 per share, and it is expected to pay a dividend of $1.36 at the end of next year, Flotation costs wili represent 3 w of the funds ralsed by lasuing new common stock. The compary is projected to grow at a constant rate of 8.75 , and they face a tax rate of 25%. What will be the wacc for this project? (Note: Found your intermediate calculations to two decimal places.)