Consider the case of Kuhn Co. Kuhn Co. is considering a new project that will require an initial investment of $45 million. It has a target capital structure of 45% debt, 4% preferred stock, and 51% 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\%6, and a market price of $1555,38. The yield on the company's current bonds is a good approximation of the yieid on any new bonds that it issues. The company can sell shares of preferred stock that pay an annual dividend of $8 at a price of $92.25 per share. Kuthn does not have any retained earnings avalable 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 $22.35 per share, and it is expected to pay a devidend of $1.36 at the end of next year. Flotation costs will represent b\% of the funds raised by issuing new common stock. The compary is projected to grow at a conatant rate of 8 . 7\%s, and they face a fas rate of 25\%. What wil be the WACC for this project? (Notel Round your intermediate calculations to two decimal: places.)