If its current tax rate is 25%, how much higher wili Turnbuli's weighted average cost of capital (WACC) be if it has to raise additional common equity capital by issuing new common stock instead of ralsing the funds through retained earnings? (Note: Round your intermediate calculations to two decimal places.) Tumbull Co, is cansidering 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-tox cost of 8.7%,$20,000 of proferred stock at a cost of 9.9%, and $320,000 of equity at a cost of 13.2\%. The firm faces a tax rate of 2504. What will be the Wacc for this project? (Note: Round your intermediate calculations to three decimal places.) Consider the case of Kutn Co. Kuhn Co, is considering a new project that will require an initial investment of $4 million. it has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. Kuhn has noncallable bonds outstanding that mature in five years wath a face value of $1,000, an annual coupon rate of 10%, and a market price of \$1,050.76. The yleld on the company's current bonds is a good approximation of the yield on any new bonds that it issues. The company can seil shares of preferred stock that pay an annual dividend of $9 at a price of $92.25 per share. Kuhn does not have any retained eamings available to finance this project, so the firm wil 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 fividend of $1.36 at the end of next yeac. Flotation costs will represent 8% of the funds ralsed 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%. Whst will be the Wacc for this project? (Note: Round your intermediate calculations to two decimal places.)