Consider the case of Turnbull Co$.$

Turnbull Co$.$ has a target capital structure of $58\%$ debt, $6\%$ preferred stock, and $36\%$ common equity. It has a before$-$tax cost of debt of $8\mathrm{.}2\%,$ and its

cost of preferred stock is $9\mathrm{.}3\%.$

If Turnbull can raise all of its equity capital from retained earnings, its cost of common equity will be $12\mathrm{.}4\%.$ However, if it is necessary to raise new

common equity, it will carry a cost of $14\mathrm{.}2\%.$

If its current tax rate is $25\%,$ how much higher will Turnbull's weighted average cost of capital $($WACC$)$ be if it has to raise additional common equity

capital by issuing new common stock instead of raising the funds through retained earnings? $($Note: Round your intermediate calculations to two

decimal places.$)$

$0\mathrm{.}55\%$

$0\mathrm{.}88\%$

$0\mathrm{.}65\%$

$0\mathrm{.}81\%$

Turnbull Co$.$ is considering a project that requires an initial investment of $$570,000.$ The firm will raise the $$570,000$ in capital by issuing $$230,000$ of

debt at a before$-$tax cost of $9\mathrm{.}6\%,$ $$20,000$ of preferred stock at a cost of $10\mathrm{.}7\%,$ and $$320,000$ of equity at a cost of $13\mathrm{.}5\%.$ The firm faces a tax rate

of $25\%.$ What will be the WACC for this project? $10\mathrm{.}86\%,($Note: Round your intermediate calculations to three decimal places.$)$