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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%, haw much higher will Turnbull's weighted average cost of capital (WACC) be if it has to raise additional common equity captal by issuing new common stock instesd of raising the funds through retained earnings? (Note: Round your intermediate calculations to two decimal places.) Tumbuli Co. is considering a project that requires an inatal investment of $270,000. The firm will raise the 3270,000 in capital by issuing 5100,000 of debt at a before-tax cost of 11.1%,530,000 of preferred stock at a cost of 12.2%, and $140,000 of equity at a cost of I4.7\%6. The firm faces a tax rate of 25%. What will be the Wacc for this project? (Note: Round your intermiediate calculations to three decimal places.) Consider the case of Kuhn Co. Kutn Co. Is considering a new project that will require an initial investment of $4 million, it has a target copital structure of 58% debt, 6% preferred stock, and 36% comenon equity, Kuhn has noncallable bonds outstanding that msture in 15 years with a face value of 31,000 , an annual coupon rate of 11 46, and a market price of 51555.38. The yield on the company's current bones is a good approvimation of the yield of any new bonds that it issues. The company can sell shares of preferred stock that pay an anoual dividend of $8 at a price of $92.25 per share. Kuhn does not have any retained earnengs available to finance this project, so the firm will have to issue new common stock to help fund ic. Its common stock is currently selling for $22.35 per share, and it is expected to poy a dividend of $1.36 at the end of nece year, flotation costs will decimal places.) 0.68%0.91%0.76%0.65% Turnbull Co. is considering a project that requires an initial investment of $270,000. The firm will raise the $270,000 in capital by issuing $100,000 of debt at a before-tax cost of 11.1%,$30,000 of preferred stock at a cost of 12.2%, and $140,000 of equity at a cost of 14.7%. 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. Kuhn Co, is considering a new project that will require an initiel inveJement of $4 million. ft has a target capital structure of 58% debt, 6% preferred stock, and 36% 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 yleid on any new bonds that if Issues. The company can sell shares of preferred stock that pay an annual dividend of 38 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 ic. 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 yeac. 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 9.24%, and they face a tax rate of 25%. What wall be the WACC for this project? (Note: Round your intermediate calculations to two decimal places.)