Consider the case of Turnbull Co. Tumbuli co. has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity, tt has a before-tax cost of debt of 8.2%, and its cost of preferred stock is 9.3%. If Turnbull can raise all of its equity capital from retained earnings, its cost of common equity will be 12.4%. However, if it is necessary to ralse new common equity, it will carry a cost of 14.2%. If its current tax rate is 40%, how much higher will turnbulf w wohited average cost of capital (WACC) be if it has to raise additional common equity captal by issuing new common stock instead of raising the funds through retained earninos? (Note: Do not round your intermediate calculations.) 0.81% 0,726 0.654 Tumboll Co, is considering a project that requires an initial imestment of $570,000. The firm will rase the $70,000 in copital by issuing $230,000 of debt at a before-tax cost of 9.6%,$20,000 of preferred stock at a cost of 10.7%, and $320,000 of equity at a cost of 13.5%5. The firm faces a tax rate of 40%. What will be the WACC for this project? (Note: Do not round intermediate calculations.) Kuhn Co. is considering a new project that will require an initial investment of $45 milion. It has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. Kuhn has noncallable bonds outstanding that mature in five vears with a face value of $1,000, 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 $95.70 per share. You can assume that Jordan does not incur any flotation costs when issuing debt and preferred stock. Kuhn does not have any retained earninos available to finance this project, so the firm will have to issue new common stock to help fund it. Its cormmon stock is currently selling for $22.35 per share, and it is expected to pay a dividend of $1.36 at the end of next year, Flotation costs will represent 8% of the funds raised by issuing new common stock. The company is projected to grow at a constant rate of 9.2%, and they face a tax rate of 40%. Determine what Kuhn Company's WACC will be for this project