Consider the case of Kuhn Co. Kuhn Co, is conaidering a sew project that will require an intbal investment of $4 mulfion. It has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. Kuhn has noncallable bonds outstanding that mature in 15 years with a foce value of $1,000, an annual coupon rate di 11\%, and a market price of s1555:38. The yield on the campany's current bonds is a good approximation of the yield on any new bonds that it wsues. The company can sell shares of preferred stock that pay an annual dividend of $8 ot a price of $92.25 per share. Wibn does rigt heve anv retained earnings available to finance this project, so the firm mill have to issian new common stock to help fund it. Its common atock is currenby, selling for $22.35 per share, and it is expected to par a dividend of $2.73 af the end of next year. Flotation costs will tete of 2Sth. Whet mail be the Wnce for this project? (Note) Round vour intermediate calculations to two decimal places.)