If its current tax rate is 25%, how much higher will Tumbuli'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.) 1.15% 1,06% 0.92% 0.83% Tumbull 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 9.6%,$30,000 of preferred stock at a cost of 10.7%, and $140,000 of equity at a cast of 13.5%. 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 initial investment of $20 malon. It has a target capital structure of 35% debt, 2% preferred stock, and 63% common equity. Kuhin has nonLaltable bands 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 bonds that it issues. The compsry can seil shares of preferred stock that pay an annual dividend of $8 at a price of $95.70 per share. Kuhn dees not have any retained earnings avalible 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 \$33.35 per share, and it is expected to pay a dividend of 52.78 at the end of next year. Flotation costs will represent 3% of the funds raised by issuing new common stock. The company is projected to grow at a constant rate of 8.7%, and they face a tax rate of 25%. What will be the WACC for this project? (Note: Round your intermediate cakulations to two decimal places:)