Consider the case of Jordan Co. Jordan Co.'s CFO is trying to determine the company's WACC. He has determined that the company's before-tax cost of debt is 11.1%. The company currently has exist100,000 of debt, and the CFO believes that the book value of the company's debt is a good approximation for the market value of the company's debt. The firm's cost of preferred stock is 12.2%, and the book value of preferred stock is exist10, 500. Its cost of equity is 14.7%, and the company currently has exist85,000 of common equity on its balance sheet. The CFO has estimated that the firm's market value of preferred stock is exist30,000, and the market value of its common equity is exist140,000. Determine Jordan's WACC if it is subject to a tax rate of 40%. Consider the case Kuhn Co. is considering a new project that will require an initial investment of exist45 million. It has a target capital structure of 35% debt, 2% preferred stock, and 63% common equity. Kuhn has noncallable bonds outstanding that mature in five years with a face value of exist1,000, an annual coupon rate of 10%, and a market price of exist1, 050.76. 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 exist9 at a price of exist95.70 per share. You can assume that Jordan does not incur any flotation costs when issuing debt and preferred stock. 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 exist33.35 per share, and it is expected to pay a dividend of exist2.78 at the end of next year. Flotation costs will represent 8% of the funds raised by issuing new common stock. The company is projected to grow at a constant rate of 9.2%, and they face a tax rate of 40%. Determine what Kuhn Company's WACC will be for this project