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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

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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 11.1%, and is cost of preferred stock is 12.2% If Turnbull can raise all of its equity capital from retained earnings, its cost of common equity will be 14.7\%. However, if it is necessary to reise new common equity, it will carry a cost of 16.8%. H. Its current tax rate is 40%, how much higher will Tumbull's weighted average cost of capital (WACC) be if it has to raise additional common equity capital by issuing new common stock instead of nalsing the funds through retained camings? (Note: Round your intermediate calculations to two decimal placesi) 0.75% 0.66% 0.64% 0.60% Tumbuh Co, is considering a project that requires an initiat investment of $1,708,000. The firm will reise the $1,708,000 in capital by issuing 5750,000 of debt at a before-tak cost of 9.6%,578,000 of nreterred stuck at a cost of 10,745, and 9890,000 of equity at a cost of 13.5%. The firm faces a tax rate of 40%. What wil be the WACC for this project? (Note: Round your intermediate calculations to three decimal ploces.) Conaider the case of Kuhn Co. stock, and 63% common equity, Kuhn has noncallable boodt outstanding that mature in 15 years with a face value of is, 000, an ancual coupon rate of 11%, and a market ance of 51555,38 . The yied an the company current bonds is a pood agoruamation of the yield on any new bends that it bwies. The campany can sell shares of preferted stock that pay an annias dividend of s9 at a price of 395.70 per share. common stock is currentiy aeling for 177.35 per thare, and it is fxpectes to woy a divdend 032.78 at the ehat of neat year. notation conts. will regrelem Jw of the funas taised by isking kew commin atock The company is projected to graw ot a contant rate or 9.2 sh, and they tace a ta. rate of 40 s. Wist wia be the wace for this project

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