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 35% debt, 2% preferred stock, and 63% common equity. Kuhn has noncallable bonds outstanding that mature in five years with a face value of $1,000, an annual coupon rate of 10%, and a market price of $1,050.76. The yield or 10.71% any'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 an annual dividend of $9 at a price of $95.70 per share. 11.90% 9.52% Kuhn does not have any retained earnings available to common stock is currently selling for $22.35 per share represent 3% of the funds raised by issuing new com rate of 25%. What will be the WACC for this project? 10.12% is project, so the firm will have to issue new common stock to help fund it. Its expected to pay a dividend of $1.36 at the end of next year. Flotation costs will 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.)