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 its 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 raise new common equity, it will carry a cost of 16.8% 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.) 0.76% 0.65% 0,84% 1.03% A-Z Turtiball 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 10.2%, $20,000 of preferred stock at a cost of 114%, and $320,000 of equity at a cost of 14.3%. 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) Consider the case of Kuhn Co. 9.21% 3.064 Kuhn Co. is considering a new project that will require vestment of 545 million. It has a target capital structure of 35% debt, 2 preferred stock, and 63% common equity. Kuhn has no cala7.4 tanding that mature in 15 years with a face value of $1,000, an annual coupon rate of 119, and a market price of $1555 38. The yield on ny's current bonds is a good approximation of the yield on any new bonds that it 11 51 sues. The company can sell shares of preferred stoc in annual dividend of $9 at a price of $95.70 per share Consider the case of Kuhn Co. Tips Tips OU Kunn Co. is considering a new project that will require an initial investment of $45 million. It has a target capital structure of 35% debt, 29 preferred stock, and 63% common equity, Kuhn has noncallable bonds outstanding that mature in 15 years with a face vave of $1,000, an annual coupon rate of 11%, and a market price of $1555.38. The yield on 1485's current bands is a good approximation of the yield on any new bonds that it Woes. The company can sell shares of preferred stod annual dividend of so at a price of $95.70 per here. 13.29 wun does not have any retained earnings available to 12.50 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 shar expected to pay a dividend of $2.78 at the end of next year. Rotation costs will 55,63 represent of the funds raised by issuing new.com The company projected to grow at a constant rate of 8., 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.) pols roductory