Consider the case of Kuhn Co$.$

Kuhn $Co,$ is considering a new project that will require an initial investment of $$20$ million. It has a target capital structure of $35\%$ debt, $2\%$ preferred stock, and $63\%$ common equity. Kuhn has noncallable bonds outstanding that mature in five years with a face value of $$1,$ ouo, an annual coupon rate of $10\%,$ and a market price of $$1,050,76.$ The yield on the company's current bonds is a good approximation of the yield on any new bonds that it issues. The company can sell shares of preferred stock that pay an annual dividend of $$9$ at a price of $$92\mathrm{.}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 $$22\mathrm{.}35$ per share, and it is expected to pay a dividend of $$2\mathrm{.}78$ at the end of next year. Flotatian costs will represent $3\%$ of the funds raised by issuing new common stock. The company is projected to grow at a constant rate of $9\mathrm{.}2\%,$ and they face a tax rate of $25\%.$ What will be the wACC for this project?

$($Note: Round your intermediate calculations to two decimal places.$)$

ill require an initial investment of $$20$ millic hn has noncallable bonds outstanding tha ce of $$1,050,19\mathrm{.}62\%$ ld on the company an sell share vailable to fir per share, an $$ew common $16\mathrm{.}35\%$ red stock that pay his project? company is project cted to pay a divid company is projed $($Note: Round$)$