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could someone show me how to work this problem? Consider the case of Kuhn Co. Kuhn Co. is considering a new project that will require
could someone show me how to work this problem? Consider the case of Kuhn Co. Kuhn Co. is considering a new project that will require an initial investment of $45 milion. It has a target capital structure of 35% debt, 2% preferred stock, and 63% common equity Kuhn has noncaltable bonds outstanding that mature in five years with a face value of $1,000, an annual coupon rate of 10%, and a market price of $1,050.76. The yield on the company's current bonds is a good approximation of the yield on any new bands 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 of $1.36 at the end of next year. Flotation costs wit represent 3% of the funds raised by issuing new common stock. The company is projected to grow at a constant rate of 9.2%, 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.) at will require an initial investment of as noncallable bonds outstanding that 5. The yield or 13.42% any's current referred stoc! an annual divi 14.64% gs available to 9.76% is project, so 2.35 per share expected to p 12.20% ing new com The company this project? (Note: R (
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