Consider the case of Turnbull Co. Turnbull Co. has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity. It 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 raise new common equity, it will carry a cost of 14.2% 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.) 0.92% 1.20% 1.01% 1.10% Turnbull Co. is considering a project that requires an initial investment of $1,708,000. The firm will raise the $1,708,000 in capital by Issuing $750,000 of debt at a before-tax cost of 8.7%, $78,000 of preferred stock at a cost of 9.9%, and $880,000 of equity at a cost of 13.2%. The firm faces a tax rate of 25%. What will be the WACC for this project? (Note: Round your intermediate calculations to three decimal places.) 9.614 Consider the case of Kuhn Co. Kuhn Co. is considering a new project that will require 8.10% hvestment of $4 million. It has a target capital structure of 35% debt, 2% preferred stock, and 63 common equity, Kuhn has no callable 10.12% standing that mature in 15 years with a foce value of $1,000, an annual coupon rate of 11%, and a market price of $1555.38. The yield on my's current bonds is a good approximation or the yield on any new bonds that it 11.64% issues. The company can sell shares of preferred stoc hin annual dividend of 58 at a price of $92.25 per share. Jer 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 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 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 $8 at a price of $92.25 per share. Kuhn does not have any retained earnings available 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 dividend or $2.78 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 8.7%, and they face a tax rate of 25%. What will be the WACC for this project? (Note: Round your intermediate calculations to two decimal places) If its current tax rate is 25%, how much higher will Turnbull's weighted average cost of ca capital by issuing new common stock instead of raising the funds through retained earning decimal places.) 0.92% 1.20% 1.01% 1.10% Turnbull Co. is considering a project that requires an initial investment of $1,708,000. The fir of debt at a before-tax cost of 8.7%, $78,000 of preferred stock at a cost of 9.9%, and $880 rate of 25%. What will be the WACC for this project? (Note: Round your inter Consider the case of Kuhn Co. Kuhn Co. is considering a new project that will require an initial investment of $4 million. It ha stock, and 63% common equity. Kuhn has noncallable bonds outstanding that mature in 15 ye- of 11%, and a market price of $1555.38. The yield on 17.17% ny's current bonds is a good a issues. The company can sell shares of preferred stock an annual dividend of $8 at a p 14.83% Kuhn does not have any retained earnings available to 15.61% is project, so the firm will have common stock is currently selling for $22.35 per share expected to pay a dividend of $ 18.73% represent 8% of the funds raised by issuing new com The company is projected to gro rate of 25%. What will be the WACC for this project? (Note: Round your interme