Consider the case of Kuhn Co. Kuhn Co. is considering a new project that will require an initial investment of $4 million. 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 face value of $1,000, an annual coupon rate of 11%, and a market price of $1555.38. The yield on 9.30% ny's current bonds is a good approximation of the yield on any new bonds that it issues. The company can sell shares of preferred stoc! an annual dividend of $8 at a price of $92.25 per share. 9.77% Kuhn does not have any retained earnings available to 10.23% is 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 expected to pay a dividend of $2.78 at the end of next year. Flotation costs will 8.84% represent 8% of the funds raised by issuing new com The company is projected to grow at a constant rate of 8.7%, and they face a tax rate of 25%. What will be the WACC for this project? 10.23% (Note: Round your intermediate calculations to two decimal places.)