Consider the case of Turnbull Co. Turnbull Co. has a target capital structure of 58% debt. If its current tax rate is 40%, how much higher will 6% preferred stock, and 36% common equity. It has a Turnbull's weighted average cost of capital (WACC) be if before-tax cost of debt of 11.1%, and its cost of it has to raise additional common equity capital by preferred stock is 12.2%. issuing new common stock instead of raising the funds through retained earnings? If Turnbull can raise all of its equity capita from retained 0.83% earnings, its cost of common equity will be 14.7%. O 0.94% However, if it is necessary to raise new common equity, O 0.75% it will carry a cost of 16.8%. O 0.64% 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 9.6%, $20,000 of preferred stock at a cost of 10.7%, and $320,000 of equity at a cost of 13.5%. The firm faces a tax rate of 40%. What will be the WACC for this project? 10.28% 7.71% 6.68% Consider the case of Kuhn Co. 8.22%